Targeting the ‘Next Gen’ tourism market is the future of hospitality

‘Next Generation’ travellers in the under-40 age cohort make up the largest group of guests in Europe’s hospitality market and are rapidly catching up with their older peers in terms of total spend on nights away. Yet these younger tourists have been under-serviced for European hotel choices that meet their appetite for modern, affordable accommodation that combines authentic local experiences with environmental responsibility.

Redevco, one of Europe’s largest privately-owned real estate managers and an urban real estate & regeneration specialist, has partnered with Swiss Finance and Property Group to address this attractive market opportunity with the formation of a ‘Next Gen Stays’ Iberian hotel joint venture. The JV is initially based on a seed portfolio of six assets in Portugal and Spain, two in the city of Lisbon and one each in Porto, Bilbao, Malaga and Seville. The parties intend to grow the portfolio with more acquisitions in the coming two years. The Next Gen Stays strategy is targeting a net leveraged IRR of 15%-plus over a five-year period and aims to build a portfolio of around €300 million. The strategy focusses on redeveloping and repurposing under-exploited real estate in city centres to create modern and sustainable hotel product. The longer-term vision is to expand the offering into a pan-European hotel vehicle with €500 million to €700 million assets under management.

Read the full ‘Thought Leadership’ article at the link below

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