As hotel asset valuations are increasingly linked to sustainability features and environmental risk exposure, do you foresee this trend changing the overall approach to hotel development and, if so, how?

It should change the overall approach and In the long term it certainly will.

The way we see, know, and experience hospitality must change and take on a new approach and new set of experiences. The way we build, facilities we offer, experiences guest have, how and in which quantity we use resources, they must all change and we must re-imagine hospitality.

A hospitality product that is immersed in the locality, supporting the surrounding community, local businesses, homemakers, built and operating in a sustainable, locally relevant, environmentally friendly, resource conscious manner.

Investors, owners, and operators are becoming more aware of the climate risks and therefore opportunities for more sustainable buildings and hospitality operations. This is a big strive forward for a more sustainable industry as more knowledge will allow the standard operations to rapidly change and be more adapted to climate change and corresponding sustainability needs.

This change in hotel development, will also require from guests, an acceptance of the new hospitality model and what their new experiences will look like. The way we define hospitality experiences, luxury will all slightly change, as it becomes more eco-friendly, and adapted to increasingly scarce resources and climate risks.

We have a responsibility now as an industry, to take care of the communities and environment we are operating in. It does not stop at the borders of our properties anymore, but efforts must extend within the community and country we are based in to ensure we are all adapted and suited for any climate related changes.

A hotel property that is adequately suited for climate changes, while the surrounding community diminishes will not lead to a profitable business, both the community and property must be thriving.

And more blatantly: Should the industry refrain from developing new hotels in risk areas?

I think it depends on the risk area and what the risks are. Know where you are building / investing. For some locations, a risk could be sea levels rise, where many local owners and inhabitants have already needed to relocate due to this issue. In these scenarios, it wouldn’t be wise to build in areas that are at high risk. In some instances, the local community and builders have already started to successfully adapt themselves to increasing climate changes with new innovations.

Research must be done not only on the economic state, tourism stats, but environmental in terms of a risk/SWOT analysis related to climate change and environmental factors locally. The way we view the purpose of a hospitality business must change and this therefore would affect where we are building.

We must be cautious now of not only where we build, but also how we build. It should not solely be about profitability of the business anymore, but thought of as a win-win solution for the community, environment, local economy and the hospitality business all to thrive sustainably. There are a lot of building techniques and innovations that are climate adapted that has already been implemented in some regions. The same can be for hospitality projects, and businesses should ensure to extend these solutions for the local neighborhood surrounding the property. Tools, expertise, aid and knowledge should be given to the surrounding community of a better, more sustainable, climate adapted way of living.