The diversification of holiday destinations is a major trend in leisure hospitality as travellers seek new experiences beyond the beach, unique locations away from the crowds and cooler temperatures in times of heatwaves. And mountain resorts stand to benefit greatly from this shift.
Ahead of the Resort & Residential Hospitality Forum (R&R) in Athens, Hospitality Investor caught up with Vertell Asset Management founder Romain Semmel to get his views on where the next goldmine is in hospitality investment.
Hospitality Investor: What global trend will reshape leisure hospitality investment most in the next decade?
Romain Semmel : We believe three key trends will significantly reshape leisure hospitality investment over the next decade.
First, marked premiumization in certain destinations, particularly iconic mountain resorts. This is creating exclusive “luxury bubbles” with high barriers to entry for less affluent travellers. While this limits accessibility, it significantly boosts real estate values and attracts high-net-worth individuals seeking unique, high-end experiences.
Second, the post-COVID shift toward wellness and meaningful experiences continues to accelerate. Hotels that go beyond physical amenities to offer a coherent philosophy and authentic delivery of their brand promise will outperform.
Third, and perhaps the most transformative trend is the rise of AI in the booking journey. Travellers will increasingly rely on AI assistants to discover and select properties. Being well-represented and optimised for these platforms will potentially surpass traditional OTAs and even direct website traffic. In the near future, platforms like ChatGPT may become the dominant distribution channel.
Hospitality Investor: Do you see a shift in demand in mountain destinations?
Semmel: We are observing several notable shifts in demand during the summer and shoulder season. Summer months are seeing strong growth, particularly in destinations with iconic peaks or natural attractions, with a growing share of international travellers from the US, Asia and India. In countries like Switzerland, where mountain resorts are within a 2 to 3-hour drive, we’re also seeing increased demand during shoulder seasons for weekend getaways and in the MICE market, for a cost-effective and sustainable alternative to international travel.
Looking ahead, we expect summer and shoulder seasons to represent a growing share of annual business in select destinations. When developing new hotel products, we focus on making sure our hotel properties are sufficiently versatile so to accommodate very different type of customers throughout the year (families during school holidays, couples during weekends, MICE and Senior during shoulder season, etc.). We need to make sure we can cater to a wider range of customers rather than the historical skier profile.
Hospitality Investor: How are evolving residential and living trends influencing leisure hospitality?
Semmel: With secondary residence development increasingly restricted (especially in Switzerland), branded or serviced residences are gaining traction. These models appeal to individual investors who want a foothold in their favourite destinations, while also generating income to offset ownership costs, all with operational convenience: owners enjoy the flexibility of use while benefiting from professional management and hotel-grade services.
For developers, integrating residential units into hospitality projects allows for upfront sales, reducing equity exposure and enhancing returns. And for hotels, it attracts a clientele that might otherwise prefer private apartments, while also feeding demand for F&B, wellness and other services.
In our current investment strategy, we almost always consider this hybrid model. It aligns investor interests with guest expectations and creates a more resilient, diversified revenue stream. Two of our on-going projects are built that way.
Hospitality Investor: What’s a common misconception about investment in mountain hospitality that you’d like to set straight?
Semmel : One of the most persistent misconceptions is that climate change signals the decline of mountain resort destinations. While it's true that traditional winter activities like skiing are being affected, the reality is far more nuanced and optimistic.
Demand is evolving, not disappearing. Travellers may ski less but they still seek the emotional and aesthetic experience of being in the mountains, especially to enjoy snow, even if it’s not the perfect powder. More importantly, climate change is driving a surge in summer and shoulder-season demand, as people increasingly escape overheated urban centres for cooler, high-altitude environments.
This shift is not a threat. It’s actually a transformation. Mountain resorts are becoming year-round destinations, with growing interest in wellness, nature and sports activity. In Switzerland for example, data shows that demand for mountain resorts remains strong. As always, there will be winners and losers, but the idea that the entire sector is in decline is simply not supported by the facts.
Hear more from Romain Semmel at the Resort & Residential Hospitality Forum (R&R) in Athens on 11-13 November, where he will be joining a roundtable on Rethinking seasonality in mountain resorts.