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Once a competitive edge, sustainability is now imperative in the European hotel sector. A strong sustainability strategy enables investors to identify opportunities and manage risks related to environmental, social, and governance (ESG) factors — as well as drive performance to create long-term value. The shift from sustainability being an advantage to a business necessity is driven by three main factors.
The COVID-19 crisis caused an unprecedented shock to the hospitality sector. Across the board, operators experienced the largest revenue drops on record. Many encountered a cashflow crisis. Those that survived did so thanks to the contribution of multiple stakeholders.
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