travel tourism best investment sector 2019
Written by Karlee Steffanni

Exploring the Market: Why You Should Consider Investing in Hotels

Exploring the Market: Why You Should Consider Investing in Hotels

1. Travel and tourism drives the global economy

In 2018, travel and tourism grew faster than all sectors but one. With the generation of 319 million jobs worldwide, this profitable sector generated a record $8.8 trillion in Gross Domestic Product. A 3.9% jump from the previous year, travel and tourism remains one of the world’s largest economic sectors. Over the next decade, the tourism industry is expected to contribute more than 100 million new jobs globally, accounting for 421 million jobs by 2029. 

 

2. It’s the second fastest growing sector in the world

According to a report by Zion Market Research, the global hotels market was valued around $147.57 billion in 2018. Between 2019 and 2026, the hotel market is expected to bring in an additional $211.54 billion. That amounts to a compound annual growth rate (CAGR) of 4.6% in just a few short years. 

 

3. Hotels are attracting millennials and keeping up with technology

Predicted by many as one of the top sectors to watch in 2019, technology is yet another money-making sector the hotel market seems to be keeping up with. From virtual vacations, to technology-based tourism incentives, the hotel industry is making strides to attract millennial travelers. In 2019, eTravel generates nearly $1.2 million in revenue and is expected to continue growing by 7.4% annually by 2023.

 

4. Increased opportunities for women and youth

Travel and tourism reportedly provides women with more opportunities for workforce participation, leadership, entrepreneurship, and empowerment than many other sectors. Increased female employment comes with its perks. It has been associated with lower levels of poverty and maintaining economic growth. A socially conscious sector, the hotel and tourist market is also associated with increased opportunities for youth

 

5. The hotel market is prepped for a recession

With worries of a bear market around the corner at any moment, it may seem a little counter-intuitive to invest in a luxury like the hotel market. During a recession, travel and tourism could easily be the first thing eliminated for personal finance planners aiming to cut costs. However, the trends suggest that even during a recession, the best hotels rise to the challenge to keep rooms full.

Intelligent hoteliers know everyone needs a break, even when times are tough. Travelers will still be in need of accommodation, but they’ll be looking for the best rates, closer to home. Investing in local hotels is a smart move for those with a desire to dabble in the world of hotel real estate investment or ownership. Especially those with consistent tourism growth and surges in populations during key times of the year.

 

This brings us to the final question:

 

Are hotels a good investment?

The bottom line: the hotel market is growing, and it shows no signs of stopping. The question is not whether to invest in hotels, but rather: which hotels to invest in. The best opportunities for hotel investment will include real estate properties located in areas with a consistent locale to sell to. Cities which have consistent tourism growth and surges in population during high travel times are smart investments for aspiring hotel owners. 

 

Interested in sharing in the wealth of the world’s second fastest growing sector? Sign up today to discover the future of hotel ownership and ROI for hotel owners with HotelierCo, The Hotel Crowdfunding Company. Click here to get started.

 

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