BERLIN — Specialization is a necessity in today's hotel industry. This is especially true in the luxury segment, which attracts high demand and guests with particular requirements.
Alex Sogno, CEO of Global Asset Solutions — a global, independent and specialized hotel asset manager — said luxury hotels also need specialized operators and asset managers.
“Investors now are looking for more targeted assets. Location is really important … and the real focus is on guest service and operational excellence,” he said during an interview at the International Hospitality Investment Forum EMEA.
Luxury might be at odds with the sweeping trend of hotel conversions across Europe, Sogno said. But he acknowledged how attractive this sector is to investors, especially in crowded European cities. For one, the luxury hotel segment is quicker to complete and finance, he added.
One outlier for Europe's luxury hotel segment is resorts, Sogno said.
“The challenge for that is finding the right location when the zoning allows to build. The Mediterranean coast is very difficult now to build new,” he said, citing Ibiza, which has imposed a moratorium on new hotels.
"This kind of trend is seen in all the popular resorts now,” he added.
Sogno has also seen an upward trend in hotel owners seeing less value in brand affiliations, even with some franchise fees getting better. Excellence and bringing a hotel up to the next level are the new brands, he added.
For more of Sogno’s insights and comments, please watch the video embedded above.