Mauritius stands as an anchor of a luxury real estate and hospitality investment corridor stretching across a broader Indian Ocean corridor that is attracting increasing levels of innovation and global capital interest, backed by record-breaking tourism numbers.
This was the most telling outcome of the newly repositioned Showcase Indian Ocean (formerly the API Mauritius Forum), which took place at the InterContinental Mauritius Resort on 8 October, bringing together more than 150 professionals from the real estate, hospitality and finance sectors.
“This 4th edition demonstrated the relevance of this forum at a time when the Indian Ocean region – anchored by Mauritius but also encompassing nations such as The Seychelles, Reunion, Zanzibar and Mozambique – has emerged as an investment hotspot for real hospitality and real estate,’’ explains Murray Anderson-Ogle, Director of established B2B events organiser API Events.
“The region is no longer simply a collection of tourist destinations, but an area attracting increasing levels of international interest from global brands and innovative local hoteliers and developers.’’
A proving ground for luxury hospitality
Many of the discussions at the event focused on the region as a proving ground for luxury hospitality and mixed-use precincts, stemming from growing levels of tourism demand.
“What is exciting about the region is the nature of the projects. We used to develop classic beachfront resorts; today, we are talking about integrated, mixed-use developments that combine lifestyle, dining, residential and sometimes office components to create a destination within the destination. This trend is advancing very quickly across the region,” said Sam Diab, Managing Director of Development at Hilton, speaking during a panel discussion at the conference, which was attended by some of the world’s leading luxury brands and local pioneers.
Showcase Indian Ocean sought to analyse the factors attracting international investors to the region, from the strongest asset class opportunities, to the conditions needed to deploy and retain capital over the long term – according to each market’s different growth drivers and investment maturity.
“Luxury has moved from opulence to meaning. Travellers are looking for a strong local influence, intimacy, exclusivity, and the feeling of experiencing something different and authentic — something that speaks to the place and its surroundings,” said Matthew Renshaw, MD : Project and Development Services at Broll Property Group – lead sponsors for Showcase Indian Ocean.
“Capital expenditure should focus on the experience, food and beverage, and the destination.”
Reinvention critical to maintain attractiveness
As the market matures, repositioning, renovation and reinvention of existing assets – a highlight topic at the event – are establishing themselves as critical investment strategies.
“Renovating rather than building is not only significantly less costly, but also makes it possible to avoid interrupting revenue. It is also an opportunity to rethink a hotel’s identity: today, a hotel is increasingly a destination in its own right, and sustainability has become an essential criterion,” says Renshaw.
Hubert Golay, Director of HTI Consulting, agrees :
“To justify a thousand-dollar nightly rate, the experience is essential: the real challenge is knowing how to create that atmosphere around the hotel,” he emphasises.
Diab highlighted the diversification of revenue streams for hoteliers.
“You cannot build a business on a single revenue stream. Owners like occupancy, but they like diversified occupancy even more, across leisure, MICE and corporate.”
Sustainability innovations from Mauritian pioneers such as Ferney Limited and the market leader Attitude Hotels were also on show at the event – particularly pertinent when considering the need for sensitive development in fragile island environments.
The next generation of hotels ?
Renshaw believes Mauritius already has a head start in terms of future growth, based on strong fundamentals.
“Mauritian hotels are already strongly focused on wellness and holistic offerings, with a service offering that extends throughout the day. This is a solid foundation on which the region can continue to build.”
Having attracted capital from around the world, the region’s real challenge is to create greater value through projects that are better designed, better financed and more closely aligned with economic, social and environmental realities.
