Low Development Costs, High ADRs and Incredible Valuations

Written by: Jay Bhakta

Glamping has taken the hospitality industry by storm over the last few years with developments occurring overnight. These remote-style stays became especially popular over the course of the Covid pandemic, as they offered the distanced retreat and vacation getaway that many craved after lockdowns. Due to the lack of physical structures required, development is rapid and far less costly. However, with the unique service proposition provided, glamping properties are able to charge high ADRs. And, as these properties are valued based on the income approach, their valuations are derived from their cash flow — resulting in incredible returns.

With varying startup costs through different business models, these high returns can be further extended. By making decisions such as buying or leasing land, startup costs can be further mitigated, allowing for a low barrier of entry for new competition to join. With the growth in popularity of

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UPDATE 1-European travel stocks sink, inflation woes keep STOXX 600 below record high

(For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window)

* TUI, Ryanair, IAG tumble as Asia COVID-19 cases spike

* Banking, mining, and industrial stocks retreat

* Healthcare and energy stocks set to post solid monthly gains

* Burberry plunges as CEO resigns to join Ferragamo (Adds comments; updates prices)

By Sagarika Jaisinghani

June 28 (Reuters) – European travel stocks sank 2% on Monday on the back of a spike in COVID-19 cases across Asia, while worries of a sudden tapering in ultra-loose global monetary policy in the wake of rising inflation kept the STOXX 600 below record highs.

The pan-European STOXX 600 was down 0.2% by 0813 GMT, with travel-related stocks TUI, Ryanair Holdings and IAG sliding between 1.9% and 3.2%.

The travel and leisure index fell to a one-month low, tracking declines in Asia as infections

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