The 225-key Cooper Hotel in Charleston , South Carolina , with 12,000 square feet of groundfloor retail space , a 7,000-square-foot full-service spa and fitness center , nearly 20,000 square feet of indoor-outdoor event space , and an outdoor infinity-edge resort pool with views of the harbor and downtown skyline .
Rob and Mike Lowe , co-CEOs of Los Angeles-based real estate investment , development and management firm , Lowe , believe evolving travel patterns are playing into their strengths as investors in resorts and destination lifestyle properties . They have seen the recent strength in leisure business – up about 20 % over the 2019 peak – and think the pandemic is changing the longerterm mindset of travelers .
It is not just a blip on the radar or a result of pent-up demand . “ People are feeling like they have a little bit more freedom in their lives to travel , and given the technology be able to go places that might be a little bit more remote ,” says Rob Lowe . “ It ’ s a lifestyle adjustment that people have accepted coming out of the pandemic .”
These adjustments that have caused people to reflect more on spending time with their family and loved ones help resorts that have accommodations for multi-generational experiences – suites , connecting rooms and villa rental have all been very strong sellers in the Lowe portfolio . “ We sell out the larger rooms before we sell out the standard hotel keys ,” Rob adds .
Even at Lowe group-dominant hotels , where smaller groups are beginning to make their way back , leisure business is strong enough to carry the day . “ We have not had a problem with group demand as fourth quarter bookings were strong and bookings are strong for next year ,” Rob says . “ The problem is cancellations . The smaller groups are now starting to cancel less often , but the large groups are still prone to canceling .”
Despite the remaining challenges with group business at some of their eight properties ( one remains under construction in Charleston , South Carolina ), this leisure momentum gives Lowe , which has a 49-year history in the business , a positive outlook on further investments . The co-CEOs , who can be defined as value-add investors , also see some more levers to pull to create value at the asset level . They say it calls for creativity and a disciplined approach , but they know opportunities remain .
Bullish for growth , the Lowes also know there are challenges with pricing today . “ It ’ s not always easy , even if you are bullish on these sectors , to be able to underwrite to investment returns that you think make sense given the risks that are inherent in the business ,” says Mike Lowe , who is quick to add that longer term , the group market is going to be quite strong because , among other things , the competition for employees are going to cause companies to have special events for their teams .
“ Also , the pandemic has allowed for more remote work ,” Mike adds . “ People are
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