How to make resort hotels profitable?

Reporting from MIPIM 2011: How to make resort hotels profitable?

Typically resort hotels require a higher investment per room than city hotels because of the expectations that come with resorts. For instance, resort hotels are expected to have larger rooms to accommodate for longer stays. Additionally, resorts are expected to provide a more vacation friendly setting. Resorts also require an increased investment in restaurants, spas and other amenities because of their remote locations.

One way in which hotel developers are working to increase profits is by developing resorts that are both vacation and business friendly. By accommodating business travelers and vacationers, resorts are able to increase their profits during the off-peak days of the year. In order to attract the business traveler, resort developers look to provide spaces that can function as both event and conference facilities. The transition to combine business amenities with resort amenities has seen success in some markets. However, it is important to note that this strategy can not be utilized in markets that have little business interaction in the surrounding areas. Golf, spa services, and the attraction of sporting events can also be key drivers of profits during the off-peak season.




Video via MIPIM World. For more, visit the official conference blog at blog.MIPIMWorld.com.

MIPIM 2010: What's fresh in hotels?

Wisconsin Real Estate MBAs report from MIPIM 2010:

Panel: Post Crisis: A Fresh Look at Hotel Development

While hotel markets have struggled across all property types, budget brands have shown far more resilience than other brands. Revenue per available room (RevPAR) has still decreased across budget hotel brands, but not to the degree that has been seen in luxury and other full service brands. Niche lifestyle brands are currently struggling the most in the hotel segment, while more versatile larger-scale brands have shown better performance and a better ability to withstand the downturn. However, interest in budget hotels has been increasing and there is some financing available for well-located properties with strong hotel flags.

For more coverage of MIPIM 2010, visit our partner CREOpoint.com.