With the ongoing pandemic, where inter-regional and international travel is restricted, hotels are forced to rethink the way they do business. A hotel is not just a siloed concrete structure on a said street, but a building within a community. A hotel is a part of a larger local ecosystem, which is integrated within society. With traditional travel coming to an all-time low, hotels have little choice but to converge with their local/domestic society, creating several interdependencies. These interdependencies can be classified into four main categories – Economic, Environmental, Social, and Health. This latest industry report, by Ambika Gandhi, highlights mechanisms and ideas through which the hospitality industry can engage with society, under these four dimensions.

The COVID-19 pandemic has challenged the traditional economic model of hyper-competition and continuous growth, which has dominated the hotel industry. This report explores the concept of convergence economies, where societal and economic goals are aligned, and resilience is prioritized over competition. By focusing on local communities and integrating various aspects of development, hotels can create sustainable and robust systems that benefit both businesses and societies.

The COVID-19 pandemic has severely impacted the global hotel industry, drastically reducing occupancy levels and highlighting the need for resilience and adaptability.

Global environmental concerns relating to climate change, rising carbon emissions, global warming, rising sea levels, and increased sea surface temperatures, among others, are at the forefront of today’s concerns. These environmental issues cannot, and must not, be ignored, and they remain one of the primary concerns within the tourism and hotel industries. Sustainable development and operations within hotels are a large part of the equation in combating rising climate risks. This special market report aims to provide an overview of the sustainable practices within hotel operations and development, and their impacts on the profitability of real estate assets.