At a time when companies in the hospitality sector are facing unprecedented challenges, private equity firm Alta Capital Real Estate has grasped the opportunity to invest in undervalued wellness hospitality assets across Asia-Pacific.
It recently launched the Alta Hospitality Fund Asia with the aim of “repositioning, rebranding and redeveloping assets for the post-COVID world in order to deliver solid returns”. It aims to create a portfolio value of US$50m (€42m, £36m) and deliver a return of 15-25 per cent over six years.
The fund is being helmed by former HSBC head of equities for Asia-Pacific, Rakesh Patel, who decided to launch it because it’s timely to do so, but also because he has a personal passion for wellness stemming from an ‘incurable’ illness as a teenager which he overcame by following the Gerson Therapy regime.
“Hospitality asset prices are dislocated due to the pandemic, which provides an interesting point in the cycle to invest,” he explains, “plus, we’re predicting accelerated growth in wellness in the future, because people have become increasingly conscious of their physical and mental wellbeing.”
Alta quotes GWI figures, reporting that the wellness tourism market is projected to achieve a compound annual growth rate of nearly 7 per cent between 2020 and 2025, reaching US$1.1bn (€923.8m, £792.6m) in revenues by 2025.
Consequently, Patel argues it makes good sense to reposition assets for this structural trend, saying: “acquiring assets at this point helps us manage our downside risk while giving us an attractive upside reward.”
The company won’t invest in standalone spas, but will focus on hospitality assets that either already have an existing wellness component or could be repositioned that way. It has a particular interest in acquiring boutique hotels, wellness retreats and villa communities with 50-150 keys and already has its sights set on a property in Bali, as well as a development in Galle, Sri Lanka with a “premier wellness retreat”.
Patel – himself a trained LEED professional – believes consumers are not only looking for more meaningful travel that incorporates traditional and modern wellness practices and authentic local experiences, but that they’re also increasingly mindful of brands’ approach to the environment, their employees and their attitude towards the communities in which they operate.
To this end, both wellness and sustainability will be at the heart of Alta’s investment strategy. Each project will operate sustainably, incorporating smart-building design elements, such as water recycling, energy efficiency and proper site orientation to boost operating efficiency and minimise CO2 emissions.
Read more from this issue of Attractions Management magazine
View contents of Attractions Management 2021 issue 1
Editor's letter: Healing the world
With the impact of COVID-19 affecting millions of people globally, spas have a special role to play in the recovery movement
Spa Programmes: On the menu
Healing heartache retreats at Chablé Mexico and Czech spas using mineral water to treat long COVID feature in our latest programming highlights
Programming: Kevin Kelly
Four Seasons’ Sensei retreat in Hawaii taps into wearable tech and biometric data
Programming: Jeremy McCarthy
Mandarin Oriental rolls out it Inner Strength Outer Strength mental wellness course to guests
Interview: Emlyn Brown
Accor’s global vice-president of wellbeing talks to Katie Barnes about business strategies following COVID
Everyone’s talking about: Local markets
How are spas adapting their business model to attract locals? And what happens when international tourists return? Spa Business magazine reports
Trends: Spa Foresight™ 20/21
Touch hunger, lung health, resilience and COVID cool spots all feature in future predictions from the Spa Business team
Sponsored: G.M. COLLIN: New partnerships
Skincare brand GM Collin is
re-energising its sales network and looking
for new distributors from across the globe
to drive its business network
Insight: Hindsight 2020
Mia Kyricos looks at the harsh lessons that spas can learn from the last year
Analysis: On your marks
Analyst Jan Freitag suggests a timescale for global hotel recovery and hotel spas
Research: Eyes on Ireland
An Irish Spa Association snapshot survey shows the impact of COVID on spas across country
Promotion: Artofcryo.com: Chill factor
Artofcryo.com provides evidence-based whole body cryotherapy solutions,
offering effective solutions for guests and an attractive ROI for investors
Fitness: Harley Pasternak
The celebrity trainer and nutritionist shares his vision of fitness and health in the age of coronavirus
Promotion: Iyashi Dôme: Optimal solution
Iyashi Dôme Japanese saunas offer a versatile treatment solution for spas searching for quality touchless treatments backed by science and Japanese technology
Finishing touch: Watch out
UK researchers launch a new study to explore how digital nature experiences can be good for us
An opportunity to reimagine one of the UK’s most recognisable towers has been formally
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At a time when companies in the hospitality sector are facing unprecedented challenges, private equity firm Alta Capital Real Estate has grasped the opportunity to invest in undervalued wellness hospitality assets across Asia-Pacific.
It recently launched the Alta Hospitality Fund Asia with the aim of “repositioning, rebranding and redeveloping assets for the post-COVID world in order to deliver solid returns”. It aims to create a portfolio value of US$50m (€42m, £36m) and deliver a return of 15-25 per cent over six years.
The fund is being helmed by former HSBC head of equities for Asia-Pacific, Rakesh Patel, who decided to launch it because it’s timely to do so, but also because he has a personal passion for wellness stemming from an ‘incurable’ illness as a teenager which he overcame by following the Gerson Therapy regime.
“Hospitality asset prices are dislocated due to the pandemic, which provides an interesting point in the cycle to invest,” he explains, “plus, we’re predicting accelerated growth in wellness in the future, because people have become increasingly conscious of their physical and mental wellbeing.”
Alta quotes GWI figures, reporting that the wellness tourism market is projected to achieve a compound annual growth rate of nearly 7 per cent between 2020 and 2025, reaching US$1.1bn (€923.8m, £792.6m) in revenues by 2025.
Consequently, Patel argues it makes good sense to reposition assets for this structural trend, saying: “acquiring assets at this point helps us manage our downside risk while giving us an attractive upside reward.”
The company won’t invest in standalone spas, but will focus on hospitality assets that either already have an existing wellness component or could be repositioned that way. It has a particular interest in acquiring boutique hotels, wellness retreats and villa communities with 50-150 keys and already has its sights set on a property in Bali, as well as a development in Galle, Sri Lanka with a “premier wellness retreat”.
Patel – himself a trained LEED professional – believes consumers are not only looking for more meaningful travel that incorporates traditional and modern wellness practices and authentic local experiences, but that they’re also increasingly mindful of brands’ approach to the environment, their employees and their attitude towards the communities in which they operate.
To this end, both wellness and sustainability will be at the heart of Alta’s investment strategy. Each project will operate sustainably, incorporating smart-building design elements, such as water recycling, energy efficiency and proper site orientation to boost operating efficiency and minimise CO2 emissions.
Read more from this issue of Attractions Management magazine
View contents of Attractions Management 2021 issue 1
Editor's letter: Healing the world
With the impact of COVID-19 affecting millions of people globally, spas have a special role to play in the recovery movement
Spa Programmes: On the menu
Healing heartache retreats at Chablé Mexico and Czech spas using mineral water to treat long COVID feature in our latest programming highlights
Programming: Kevin Kelly
Four Seasons’ Sensei retreat in Hawaii taps into wearable tech and biometric data
Programming: Jeremy McCarthy
Mandarin Oriental rolls out it Inner Strength Outer Strength mental wellness course to guests
Interview: Emlyn Brown
Accor’s global vice-president of wellbeing talks to Katie Barnes about business strategies following COVID
Everyone’s talking about: Local markets
How are spas adapting their business model to attract locals? And what happens when international tourists return? Spa Business magazine reports
Trends: Spa Foresight™ 20/21
Touch hunger, lung health, resilience and COVID cool spots all feature in future predictions from the Spa Business team
Sponsored: G.M. COLLIN: New partnerships
Skincare brand GM Collin is
re-energising its sales network and looking
for new distributors from across the globe
to drive its business network
Insight: Hindsight 2020
Mia Kyricos looks at the harsh lessons that spas can learn from the last year
Analysis: On your marks
Analyst Jan Freitag suggests a timescale for global hotel recovery and hotel spas
Research: Eyes on Ireland
An Irish Spa Association snapshot survey shows the impact of COVID on spas across country
Promotion: Artofcryo.com: Chill factor
Artofcryo.com provides evidence-based whole body cryotherapy solutions,
offering effective solutions for guests and an attractive ROI for investors
Fitness: Harley Pasternak
The celebrity trainer and nutritionist shares his vision of fitness and health in the age of coronavirus
Promotion: Iyashi Dôme: Optimal solution
Iyashi Dôme Japanese saunas offer a versatile treatment solution for spas searching for quality touchless treatments backed by science and Japanese technology
Finishing touch: Watch out
UK researchers launch a new study to explore how digital nature experiences can be good for us
Hotel de France, located on the British Isle of Jersey, has created a wellness retreat package
that includes a hot yoga session that will take place in Jersey Zoo’s butterfly sanctuary.
A new immersive attraction designed to transport visitors into the final hours of ancient Pompeii
is preparing to open near the world-famous archaeological site in southern Italy.
Experience design company, BRC Imagination Arts, has completed a transition that sees founder
Bob Rogers pass ownership of the business to four long-serving senior executives, while
remaining actively involved with the company.
Movie Park Germany has opened a new Paramount Pictures-themed attraction as part of its 30th
anniversary celebrations, using immersive storytelling and adaptive reuse to reinforce the park’s
longstanding “Hollywood in Germany” positioning.
Therme Manchester’s 28-acre development, which will include interconnected glass pavilions
that measure 65,000sq m, will be the largest bathing and wellbeing attraction in the world once
complete, according to prof David Russell, CEO of Therme UK.
Efteling has opened Hooghmoed, a new family drop tower designed to broaden the appeal of its
recently launched Sirene Island themed area and introduce younger visitors to thrill attractions.
A proposed Puy du Fou development near Bicester and Universal Destinations and Experiences’
planned resort in Bedford are emerging as part of a wider transformation of the Oxford–
Cambridge Growth Corridor into a major centre for UK leisure and tourism inv
Shedd Aquarium has opened the Immersion Theater developed in partnership with SimEx-
Iwerks, as part of a wider strategy to enhance the guest experience and create additional
revenue opportunities.
The UK government has announced a temporary reduction in VAT on visitor attractions and
children’s meals as part of a summer cost-of-living support package designed to stimulate the
visitor economy and encourage family days out.
As designer Yinka Ilori prepares for his first solo gallery show in London, he speaks exclusively
to CLADmag about his mission to spread joy, the power of play, and his bold approach to using
colour (including the colours you won’t see in his work).
The government of Thailand is exploring plans for a THB300bn (£6.3bn, US$8.3bn)
entertainment complex in the country’s Eastern Economic Corridor (EEC), with officials
proposing a large-scale theme park and sports destination as part of a broader tourism and
economic development strategy.
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