Alt-hotels new safe haven: JLL

GLOBAL REPORT – Originally designed to appeal to cash-strapped leisure travelers, the alternative accommodations sector’s demand base has expanded significantly post-COVID in tandem with the societal shifts in the way people live, work and travel, according to a report from JLL.

As consumers increasingly seek unique and authentic experiences and allocate a higher portion of their discretionary spending accordingly, the sector has attracted travelers across multiple segments, including business, leisure, and the growing digital nomad population.

As a result, demand growth for alternative accommodations has surged post-pandemic and outpaced supply growth since late 2021. In the most recent trailing-twelve-months period of March 2023, demand growth exceeds supply growth by 10 percentage points.

While at strong levels, demand growth has been stabilizing amid rising supply and economic uncertainty. Nevertheless, ADR and RevPAL2 are continuing to soar at post-pandemic highs. JLL said to expect this trend to continue over the long-term as international travel recovers.