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European hotel executives recently gathered at the Hotel Industry Development Event in London to highlight their ongoing commitment to diversity, equity, inclusion (DEI), environmental, social, and governance (ESG) efforts, as well as technological progress.
These initiatives are considered essential for the future of the hospitality industry, particularly in key markets such as the U.K. and Germany. Rebekah Tobias and Dimitris Manikis were among the leaders who discussed how these commitments should be seen as investments in the industry’s long-term growth and sustainability.
Viewing DEI and ESG as Investments in Hospitality’s Future
Rebekah Tobias and Dimitris Manikis, prominent figures in the hospitality sector, emphasised that DEI and ESG initiatives should be regarded as investments rather than costs at a recent event in London.
While their calls for responsible business practices were clear, Tobias acknowledged the ongoing investment challenges, particularly in the U.K., where planning permissions continue to be a significant obstacle. Nevertheless, both the U.K. and Germany remain prime markets for hotel development.
Dimitris Manikis, President of Europe, the Middle East, Eurasia, and Africa at Wyndham Hotels & Resorts, echoed this sentiment, underlining the importance of the hospitality industry taking the lead in responsible business practices,
“Doing the right thing is doing the right thing, and we know what this is. For the next generation, for the planet. Operators know this,” he said.
Investment Challenges Persist
Hotel investors remain cautious about planning and development, especially in the U.K, despite strong support for ESG and DEI, . Obtaining planning permissions remains a major hurdle, slowing down new projects. Tobias highlighted this challenge, explaining:
“We focused on the United Kingdom due to pricing, and family-office backing means we can take a longer-term stance. What is problematic is getting involved in any type of planning. Investors are very cautious of that.”
However, both the U.K. and Germany continue to offer attractive markets for hotel development, with strong pipeline opportunities.
Technology Investments to Future-Proof Hospitality
Technology is becoming an increasingly critical tool for hoteliers to streamline operations and maximise revenue, especially with rising operational costs and high turnover rates.
Hotels are currently spending approximately 4% of revenue on technology, and the costs of implementation are gradually decreasing.
Wouter Geerts, Director of Market Research and Intelligence at Mews, pointed out the growing need for technology upgrades,
“Hospitality spends 4% of revenue on technology, but it is getting cheaper.”
Cloud-based infrastructure and dynamic pricing models are becoming standard across the industry. Geerts stressed the urgency of this shift:
“The speed of change onto the cloud is really ramping up. Yes, that’s been here for 10 years, but it is needed now more than ever as costs and turnover rates are really high.”
Revenue management strategies are also evolving, with hoteliers shifting their focus from traditional revenue per available room (RevPAR) to revenue per available square metre. Manikis noted the growing importance of maximising all revenue streams within hotel properties.
European Hotel Demand Remains Strong
Europe’s hotel occupancy remains resilient despite fluctuations in global travel, with strong corporate travel recovery and an expected increase in international arrivals.
Thomas Emanuel, Senior Director at STR, CoStar’s hospitality analytics division, compared occupancy levels internationally:
“Just look at occupancy and compare it internationally. Seventy percent in Europe, and 63% in the U.S. (Average daily rate) continued to go up. There are reasons to be confident.”
Emanuel also noted that major global events in 2025 would further support demand, while a low hotel supply growth rate of just 2.7% ensures pricing stability,
“We do events very well.”
Emerging markets, particularly in India, are expected to drive growth in European tourism.
Dimitris Manikis highlighted the increasing role of Indian travellers, noting that while Chinese tourists typically head to Southeast Asia, Indians are opting for European destinations,
“We are bullish,” he remarked.
Conclusion:
European hoteliers are continuing to double down on DEI, sustainability, and technology investment to ensure long-term success. Industry experts agree that these commitments are not just ethical choices but also sound business strategies that align with profitability and future growth.