The market is quickly recovering to the pre-pandemic levels and will demonstrate a steady growth between 2022 and 2028. According to the report published by Facts Factors, the global hospitality market size was worth around USD 3953 billion in 2021 and is predicted to grow to around USD 6716.3 billion by 2028 with a compound annual growth rate (CAGR) of roughly 10.24% between 2022 and 2028 (source: Facts Factors, 2022). Fortune Business Insights forecasts the global luxury hotel market size is projected to reach USD 238.49 billion by 2028, exhibiting a CAGR of 10.4% during the forecast period (source:Fortune Business Insights, 2022).
Hotels are however, experiencing difficulties with financing, even though the industry overall has moved significantly towards digitalisation due to COVID. As a result, Audit firm PwC reported “67 percent of the equity investors indicated tighter underwriting standards for new real estate projects”, “the availability of debt dwindled, and the large bid-ask spread prevailed” (source: PwC Emerging Trends report, 2022). Hospitality businesses which have survived the COVID-19 crisis are being forced to innovate (source: Strategic Management, May2022). Compounding the challenges hotel face is the current global rates of inflation, with inflation in Europe reaching a record 10.7% in October 2022 (source: NY Times, Oct 202Compounding the challenges hotel face is the current global rates of inflation, with inflation in Europe reaching a record 10.7% in October 2022 (source: NY Times, Oct 2022).
With the current platform and model which Azqira has developed, hotels are able to access the necessary funds to continue operations while minimising the impacts of inflation on traditional banking.