In an exclusive interview, Jan Smits of Pro-invest Group APAC shares insights on trends shaping the hospitality industry, emphasizing technology integration, sustainability, and evolving guest experiences.
Jan Smits, the Deputy Chair and CEO of Pro-invest Group APAC, delved into the evolving landscape of the hospitality industry during an exclusive interview with Hotel Management. He shared insights at the AHICE South East Asia event on February 26, where he discussed trends in hotel operations, the growing importance of food and beverage (F&B) experiences, projections for the Australia and New Zealand hotel sectors, and the company’s strategic moves toward sustainability and co-living.
One significant trend highlighted by Smits is the rise of hyper-personalized guest experiences. According to him, advancements in artificial intelligence and data analytics are enabling hotels to provide tailored services that anticipate guest needs, from pre-arrival preferences to bespoke itineraries. “We are creating best-in-class technology that will ensure our hotels lead the way in incorporating technology,” Smits noted, emphasizing the integration of advanced technologies like mobile check-ins and AI-powered concierge services.
Additionally, Smits pointed out that event-driven travel is becoming increasingly prominent, with travelers planning trips around specific events such as sports tournaments and cultural festivals. Pro-invest is responding to this trend by partnering with major events like the Race of Champions in Australia and supporting initiatives such as the Mardi Gras and various musicals.
Food and beverage offerings are also experiencing a shift toward enhanced experiences that reflect local culture, especially in luxury and lifestyle hotels. Smits mentioned that Pro-invest’s F&B sales saw a significant increase last year, and he underscored the collaboration with notable chefs and local breweries to create unique dining experiences, such as themed brunches at Kimpton Margo and a signature Pale Ale launched in partnership with Local Brewing Co.
Looking ahead, Smits discussed the forecast for the hospitality sectors in Australia and New Zealand, which is optimistic despite challenges. He referenced recent research from the Mastercard Economics Institute, stating, “Australia and New Zealand’s hospitality sectors led the world in terms of occupancy in 2024.” Occupancy rates in Australia were reported at 78.1%, significantly higher than those in the US, Europe, and the Middle East. International visitor arrivals in Australia are expected to grow by 10% annually in the coming years, driven by an expanding middle class and increased accessibility through low-cost airlines.
However, Smits acknowledged potential hurdles, including rising living costs and the impacts of climate change, which could affect the recovery of the hospitality market. He highlighted that while the return to office work and a surge in business travel are promising for the MICE (Meetings, Incentives, Conferences, and Exhibitions) sector, profitability for some hotels may decline due to competitive pressures.
For investors, Smits asserted the hospitality sector remains an attractive opportunity. He explained that hotels provide a flexible asset capable of adjusting daily room rates amid fluctuating economic conditions, making them an appealing choice in today’s volatile market landscape. He noted the contrasts with traditional office and retail investments, which are more rigid due to long-term leases.
In terms of sustainability, Pro-invest is committed to integrating environmentally friendly practices within its operational and investment strategies. The company has set a Net Zero target by 2030 and aims to lead in sustainable practices within the hotel sector. Since launching its first Hospitality Fund in 2016, Pro-invest has emphasized energy efficiency in its investment criteria. “We have always put sustainability as a key consideration in our operations and investment decisions,” Smits stated.
Lastly, Smits provided insights into Pro-invest’s upcoming initiative in the co-living sector, emphasizing the shift toward flex-living as it becomes more attractive to a broader demographic. He stated that the company will leverage its hospitality expertise to create community-driven living environments, offering amenities that cater to modern urban lifestyles.
As the landscape of the hospitality industry evolves, Pro-invest appears poised to adapt and innovate in response to new consumer demands, technological advancements, and sustainability imperatives.
Source: Noah Wire Services
