INVESTABLE HOSPITALITY ART COLLECTIONS; PUTTING THE ORIGINAL BACK IN THE HOTEL.
A little jet lagged and a lot inspired, I recently returned from the newly branded Hong Kong Art Basel. As art consultants, it’s important for us to keep a finger on the world market’s pulse, both to gain access to wonderful works for our clients, but also to stay connected with the art world beyond North America.
I’m happy to report the Asian world of contemporary fine art collecting—from both at home and abroad—is up, even in sluggish financial times. It’s further proof art is a safe financial bet.
Our hospitality and corporate clients are also taking note of art’s consistent value. Several of our clients are asking about art as an asset, viewing art as not only an experience based investment but a financial one as well.
With the advent of an economy looking for more secure tangible assets, fine art provides many upsides. An uncorrelated market, a hedge against inflation and a rising middle market around the world, we see nothing but positive long-term horizons for artwork investment. It is important to note, of the world’s collector base, most art transactions (at least 80%) are completed at under $10,000.00 USD, easily fitting within a hospitality setting, brand and client experience.
I’m excited to see more hoteliers inserting original and curated art collections back into hotels, catering to an identified demand from more globally travelled, knowledgeable and savvy client. When FBFA has done a great job for our clients, the guest participates in a space and that experience is aligned with all the other experience-based elements the hotel has to offer. At whatever price level, when done well, guest participation, guest engagement, drives that seemingly intangible value called “a good experience”.
All around the world business and passion travellers have come to expect a level of service from their hotels and as such, they expect a level of quality in the artwork they see. We all know people remember quality and look for it everywhere in their hotel experiences. Hotel owners are also looking for quality; quality investments, guests, locations and brands. So why should art in a hotel be any different?