lh x cw market report A4_23.03.02 v34 interactive72

ESG – MONETISED SUSTAINABILITY

While ESG has already been at the forefront of thought for many industry stakeholders, so far, the hotel sector has struggled to assign an associated monetary value. However, with mounting research, empirical evidence, and tools that allow more effective measurement of ESG impacts, sustainability should be seen more clearly reflected in pricing, and this will finally translate into valuations, which is long overdue. Explore Cushman & Wakefield Hospitality’s latest ESG Hospitality Investor Survey here .

EXPECTED ESG PREMIUMS - BREAKDOWN BY INVESTMENT TYPE Source: C&W Research – Investor Survey in H1 2022

Opportunistic Value add Core 4,5% 5,4% 7.3%

INCLUSION OF ESG INTO ACQUISITION DUE DILIGENCE Source: C&W Research – Hotel Investor Survey - H2 2022

100%

90%

80%

71%

70%

60%

53%

50%

40%

38%

30%

30%

18%

10%

12%

6%

0%

In

2021

before 2018

2019

2022

2020

Progress