New Senior Living Capacities

will be very much in demand in the coming decades, which will undoubtedly offer great opportunities to investors to tap into this fast-expanding market. For now, it remains a question whether hospitality companies can and will participate.

Ageing is expected to become one of the key factors driving social transformation in the 21st century, as the elderly population is growing faster than other age groups. One in six people (16%) will be over age 65 globally by 2050, up from one in ten (10%) in 2022,

with the number of individuals aged 65 years or older forecast to be twice the number of children under age 5, the UN said.

These demographic trends are foreseen to support growth in the senior living industry in the coming decades. Market research firm Technavio has estimated that the global senior living market will grow by more than $127 billion, or at a compound annual growth rate of 5.9%, from 2023 to 2028, partially as the baby boomer generation enters retirement age and health care technologies advance.

Seniors set to spend more on housing, hospitality

The affordability of housing remains a problem for many seniors in a number of economies. But the OECD said the income of people aged over 65 increased compared with that of the total population in more than two-thirds of the organization’s member countries in the last two decades. It is also telling that the share of housing in the overall consumer spending of people aged over 50 is predicted to rise to 22.8% in 2050 from 21.5% in 2020, Economist Impact said in a report covering 76 countries.

Demand for senior living facilities and amenities is foreseen to rise not only because of the growth of the elderly population. As average life expectancy climbs, seniors increasingly desire to live independently, remain socially engaged and enjoy leisure activities and experiences. Economist Impact also forecasts that people aged over 50 will allocate 7.9% of their total spending to recreation and culture and 6.2% to restaurants and hotels in 2050, up from 5.5% and 5.7% in 2020, respectively.

The affordability of housing remains a problem for many seniors in a number of economies.

But the OECD said the income of people aged over 65 increased compared with that of the total population in more than two-thirds of the organization’s member countries in the last two decades. It is also telling that the share of housing in the overall consumer spending of people aged over 50 is predicted to rise to 22.8% in 2050 from 21.5% in 2020, Economist Impact said in a report covering 76 countries.

The affordability of housing remains a problem for many seniors in a number of economies. But the OECD said the income of people aged over 65 increased compared with that of the total population in more than two-thirds of the organization’s member countries in the last two decades. It is also telling that the share of housing in the overall consumer spending of people aged over 50 is predicted to rise to 22.8% in 2050 from 21.5% in 2020, Economist Impact said in a report covering 76 countries.

The affordability of housing remains

a problem for many seniors in a number of economies. But the OECD said the income of people aged over 65 increased compared with that of the total population in more than two-thirds of the organization’s member countries in the last two decades. It is also telling that the share of housing in the overall consumer spending of people aged over 50 is predicted to rise to 22.8% in 2050 from 21.5% in 2020, Economist Impact said in a report covering 76 countries.

The affordability of housing remains a problem for many seniors in a number of economies. But the OECD said the income of people aged over 65 increased compared with that of the total population in more than two-thirds of the organization’s member countries in the last two decades. It is also telling that the share of housing in the overall consumer spending of people aged over 50 is predicted to rise to 22.8% in 2050 from 21.5% in 2020, Economist Impact said in a report covering 76 countries.

The affordability of housing remains a problem for many seniors in a number of economies. But the OECD said the income of people aged over 65 increased compared with that of the total population in more than two-thirds of the organization’s member countries in the last two decades. It is also telling that the share of housing in the overall consumer spending of people aged over 50 is predicted to rise to 22.8% in 2050 from 21.5% in 2020, Economist Impact said in a report covering 76 countries.

The affordability of housing remains a problem for many seniors in a number of economies. But the OECD said the income of people aged over 65 increased compared with that of the total population in more than two-thirds of the organization’s member countries in the last two decades. It is also telling that the share of housing in the overall consumer spending of people aged over 50 is predicted to rise to 22.8% in 2050 from 21.5% in 2020, Economist Impact said in a report covering 76 countries.

The affordability of housing remains a problem for many seniors in a number of economies. But the OECD said the income of people aged over 65 increased compared with that of the total population in more than two-thirds of the organization’s member countries in the last two decades. It is also telling that the share of housing in the overall consumer spending of people aged over 50 is predicted to rise to 22.8% in 2050 from 21.5% in 2020, Economist Impact said in a report covering 76 countries.

The expected demographic

shift and concerns about supply of new senior living capacities will likely sustain investor interest in the sector in general, although investor appetite may vary in certain markets. Growth opportunities in senior living attracted investors’ attention from various industries in recent years, ranging from property development to health care, insurance and even retail.

Health care providers often venture into the senior living sector to complement their offerings. US clinics and medical centers operator Sanford Health announced plans in February 2024 to build at least 146 senior living villas at Sioux Falls by 2026. In another example, Swiss rehabilitation services provider Reha Rheinfelden acquired the four-star Park-Hotel am Rhein and its related senior living apartments near Basel from thermal baths operator Parkresort Rheinfelden in April 2024.

Senior living is also attractive for insurers, which can take long-term operational risks. Sagicor, a Barbados-based insurance firm operating in the Americas, started to build the first 88 residences of The Estates at St. George in Barbados, an “active lifestyle residential community”, in 2019. Although there are no age restrictions for prospective buyers, the complex is geared towards seniors and features 24-hour emergency care, special medical clinics and pharmacy and memory care.

At first glance, it may seem surprising to see the emergence of South Korean department stores operator Shinsegae as a potential investor in senior living. The group’s property unit announced plans to develop a “high-quality senior residence project” in December 2023. While not too many details have been disclosed about the development so far, the company said it wants to integrate offerings from other members of the Shinsegae group in the envisioned senior residences business.

Hospitality projects target 55+ active adults

Despite the promising opportunities, hospitality firms have so far largely overlooked the senior living sector, and participated in only a handful of deals or projects in the past few years. US hotels, resorts and restaurants franchisor Margaritaville, founded by tropical rock singer Jimmy Buffett, teamed up with residential developer Minto Communities in 2017 to open Latitude Margaritaville Daytona Beach, its first senior living community for those over age 55, in Florida. Since then, the partners opened two other communities in Florida and South Carolina and are planning to launch additional locations in Texas and Mexico.