shopping center

Shopping tourism is on the rise again. International cases have proven that shopping and overnight stays can constitute a profitable symbiosis. Nevertheless, this profitable combination of hotel and retail is still in its infancy in Europe. Christian Buer, Professor of Business Administration and Hotel Real Estate & Financing at Heilbronn University and Founder of the consulting firm Nemis, explains where and how the combination of hotel and retail has the potential for success and why we should focus on the outlet and luxury sectors in particular.

The retail and hotel asset classes are both geared towards the consumer, clearly benefit from tourism and are impacted by the “luxury vs. budget” polarization trend. Six months ago, Union Investment therefore decided to bring together its retail and hotel investment teams by establishing an Investment Management Operational department. The Hamburg-based investment and asset management company is targeting synergies and opportunities for its portfolio in the two property categories and considering acquisitions. Andreas Löcher, Head of Investment Management Operational, and Roman Müller, Head of Investment Management Retail, discuss the megatrends affecting both asset classes, highlight other similarities and identify locations of particular interest.

Retail tourism is here to stay. Travelers collectively spend billions of euros every year when they shop. They create jobs, providing income for retailers, craftsmen, and designers. Retail is one of the world’s most diverse industries, shaping every part of the travel experience, and retail tourism is playing a pivotal role in the recovery of the travel and tourism sector, which saw inbound tourism revenues surge by 82 percent in 2022, according to the World Travel & Tourism Council (WTTC). Despite all the challenges brought on by the pandemic, retail tourism remains strong. Furthermore, if tourism and hospitality are to play an important role in the future of retail, then the presence and location of hotels is crucial, experts say. What, however, does the joint potential of the retail and hotel industry look like? This ACROSS cover story analyzes the synergies between the retail and hotel industries.