Today’s hospitality consumers don’t just want a transactional service, they want a story, a vibe, a moment. They also come with a strong desire for surprise, adventure, and authenticity with all the expectations of comfort, consistency, and care.
The world’s most exciting brands are the ones who can satisfy all these requirements. They know what makes the gastronome, the adventure seeker, the conscious tourist, and the cultural explorer tick. And these brands have a unique way of making experiences enriching, ensuring the extraordinary is effortless.
Whether it’s high-end, global, lifestyle, hospitality, food & beverage and entertainment brands or high-quality gastronomy – the world’s most exciting brands are undeniably a magnet for consumers. Yet, at the same time, these brands have also become a magnet for investors for much the same reasons.
The economic potential of the hospitality industry is immense. Last year, The World Travel & Tourism Council (WTTC) projected that the sector’s global economic contribution would reach an all-time high of $11.1 trillion in 2024, representing about 10% of global GDP. It’s no wonder why the world’s hottest hospitality brands are capturing the attention of investors.
Yet, many investors are increasingly strategic and selective, they don’t just want returns (although this is obviously important), they look for brands with vision, staying power, and a clear and compelling story that will resonate with today’s consumer. The modern investor is savvy enough to understand the true value of these brands and their ability to generate superior and sustainable returns.
Derk Nicholson
Chief Strategy and Investor Relations Officer
I’d also add that unique experience is an increasingly prominent differentiator in hospitality, as investors seek to connect with brands that offer something truly pioneering in terms of experience. It can perhaps be argued that what the investor and consumer want in hospitality brands is not dissimilar – and it’s why so many of the world’s famous hospitality entities are so sought after by consumer and investor alike.
That’s why at Alpha Dhabi Holding (ADH), we have been intentional in our investment approach to acquire and also partner with exciting brands. Our aim is to connect with brands that are well-known, legendary, unique, and in some cases tourist destinations in their own right.
As part of this, we strive to lead the way by fostering strategic partnerships with top hotel and luxury lifestyle brands locally and globally to shape the future of hospitality. With an agile mindset, we have positioned ourselves as an active investor and a success accelerator in the hospitality sector that embraces entrepreneurship and innovation to drive long-term investment.
As proof of this in action, we developed a joint venture with Monterock International Limited to create ADMO Lifestyle Holding (AMDO) in 2022. Through its flagship locations in Dubai and Singapore along with a development pipeline in London, Miami, Las Vegas and Abu Dhabi, ADMO’s plans for global expansion are focused on creating world-class, holistic, luxurious, all-encompassing guest experiences.
We’ve united some of world’s most exciting brands including, Nammos, Em Sherif, CE LA VI and established a joint venture with Addminds Hospitality, AlphaMind. These brands are market leaders when it comes to connecting with audiences. In many cases they play a significant role in attracting consumers to the city or destination because of their immense pull power.
The pull power factor is something which influences our investment approach at Alpha Dhabi Holding. We understand how brands can contribute to the promotion of Abu Dhabi as a tourist and international destination. For instance, the National Corporation for Tourism & Hotels (NCTH), an Alpha Dhabi subsidiary, has played a vital role in showcasing the unique charm and heritage of the region by providing travelers and groups with the chance to connect with inter-cultural diversity, local people, explore the beautiful landscapes, and experience the true essence of Arabia.
And what of the results? In Abu Dhabi, the Department of Culture and Tourism reported that the emirate’s hotels received 4.8 million guests year-to-date as of October 2024, marking a 26% increase in international guests compared to 2023. This in my view demonstrates that Abu Dhabi’s hospitality industry, and especially its hotels, are becoming a firm favorite of international travelers as well as domestic guests.
NCTH has united many assets, in the UAE and beyond, including, InterContinental Hotel, St. Regis Saadiyat, and Al Wathba Luxury Collection Desert Resort & Spa in Abu Dhabi and Cheval Blanc Randheli Maldives and Cheval Blanc Seychelles.
Our portfolio, I’m proud to say, represents a collection of some of the world’s best loved and most exciting brands, that create memorable experiences for guests as well as deep residual value for their country or city. As we look to build on this promising future, our aim will be to drive more partnerships that will connect audiences with world-leading hospitality experiences.