This was an unprecedented challenge for the industry, which was required to quickly adapt and innovate in order to survive. For many, this meant rapidly digitalizing their services, reducing costs and finding new uses for unused real estate.
Now, a few years down the line, and the picture is far less gloomy. The industry has bounced back and proven to be hugely resilient and innovative, coming through the worst of the pandemic and discovering new ways to provide services to clients. Businesses that successfully adapted are thriving as they seek new opportunities in emerging frontiers like the metaverse, wellness and sustainable travel, thereby supplementing their more traditional business models.
However, the hospitality industry is now facing several other factors that are driving significant change and providing fresh challenges and opportunities. Some of these factors include a growing stakeholder focus on environmental, social and governance (ESG) issues, global economic volatility and the evolution of consumer behaviors.
Shareholders, consumers, employees and regulators are increasingly scrutinizing businesses’ ESG credentials, with sustainability at the forefront. This is forcing the hospitality industry to work harder to understand its impact on the environment and how to mitigate it.
Global economic volatility is leading to a more cautious approach from both investors and consumers as they look to reduce spending in the face of rising inflation and an uncertain economic backdrop. At the same time, consumer behaviors have significantly changed because of the pandemic, which reset expectations and desires around hospitality. These changes are intricate and specific to certain demographics and sectors within the hospitality industry. As the hospitality landscape continues to evolve, it remains clear that those businesses that can look ahead and quickly adapt to their new reality will be best placed to thrive in the future.
In an effort to support the industry in preparing for the future, lawyers from across Reed Smith’s global real estate team have contributed to this report to provide an A–Z guide on what tomorrow’s hospitality world could look like and how to navigate the legal and regulatory challenges and opportunities that the shifting landscape presents. Themes considered include finance, sustainability, tech and marketing, new trends, data and employment. We invite you to reach out to any of our authors to discuss the issues we address and what they mean for your organization.