Hotel investors and developers in Europe are increasingly incorporating sustainability in their strategies as the Eurozone faces an improving economic outlook from growing business and leisure travel, Property Investor Europe reported, citing interviews with various market players.
Hans-Peter Hermann, Invesco Real Estate's senior director of asset management hotels, told the publication that the company has started incorporating sustainability in its due diligence process for properties, including during its acquisition of the QO Hotel in Amsterdam in January. The 288-room hotel is expected to source 80% of its lighting from natural daylight, Hermann added.
Invesco has also initiated an annual workshop-style gathering of tenants, operating partners and industry stakeholders, where they discuss and share proprietary information, case studies and practices that lead to their portfolios' environmental efficiency and increased returns, according to the report.
Boutique hotel owner QBIC Hotels, meanwhile, is implementing efforts to reduce carbon dioxide emissions and water consumption in its properties, while also considering a sustainability model in the selection of the location and construction of its hotels, Rebecca Waters, head of brand and marketing said in the report.
On the other hand, Commerz Real Head of Hospitality Dirk Schuldes noted that although sustainability, under certain conditions, can lead to as much as 5% to 7% savings on operating costs for hotels, investors will have to also weigh the capital expenditure for such projects when making investment decisions.
Eurozone has seen an across-the-board increase in tourist and business travel in 2017, PIE reported, citing PwC.