2022 Trends Report by Catalyst

2022

Trends Report

W W W.T H E LY S T. C O M

2022 Trends Report Ou r wo rld is en te ri n g i n to a t i m e wh e n t h e p o te nt i al e n d o f COVI D -19 is a n e n cou ra g i n g rea l i ty a n d, t h e re fo re , w i l l affe c t fut u re st ra tegy, p os i t i on i n g , a n d e f fe c t i ve n e ss o f marke t i n g a c ro ss t h e boa rd . Con s u m e r b e h avi or i n t h e Uni te d St ate s has been tested in t h e m os t ex t re m e ways si n ce t h e b e g i nni n g o f t h e pa n demic — a n ew n orm n o on e wa s p re pare d fo r, i n cl ud i n g t h e f i e ld o f m a rket i n g . Now in t h e m id s t of 202 2 , Ca t a l ys t h a s o b se r ve d a co nt i nui n g wave o f o pt imi s m wh e n i t com e s to m ajo r t re n d s p e r t ai ni n g to ou r fo cu sed rea l e s t a te ve r t i c a l s for m ult i fami l y, se ni o r l i vi n g , stu dent h o u sin g , a n d h os p i t a l i ty. W h e t h e r i t ’s a re f re sh e d t ake on wo rk/ life ba l a n ce , a s u rg i n g i n te re s t i n n ew a d ve nt ure s, o r a fo r wa rd-fo cu s e d a p p roa ch to n ew p l at fo rms an d te chn o l o g y, a n ew sense o f con f i d e n ce a n d h op e f u l n e ss co nt i nue s to b e i nfu sed into t h e i n d u s t r y l i ke b eve r b e fo re .

P h oto by Bro o ke Cag l e on U n spl ash

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PANTONE HAS EVEN SET A PRECEDENT OF OPTIMISM FOR 2022 WITH THEIR COLOR OF THE YEAR, VERY PERI: “Di sp l ayi n g a care f re e co nf i d en ce an d a d ari n g curi o si ty t hat ani mate s o ur creat i ve sp i ri t , i n q ui si t i ve an d i nt ri g ui n g PANTO NE 17-3 93 8 Ve r y Pe ri h e l p s us to e mb ra ce t hi s alte red l an d scap e o f p o ssi b i l i t i e s, o p enin g us up to a n ew vi si o n as we rewrite o ur l i ve s. Re ki n d l i n g g rat i t ude for so m e o f t h e q ual i t i e s t hat b l ue re p re s e n t s co mp l e m e nte d by a n ew p e rsp e c t i ve t hat re so na tes tod ay, PA N TO NE 17-3 93 8 Ve r y Pe ri p l a ce s t h e fut ure ah ea d i n a n ew l i g h t . We a re l i vi n g i n t ransfo rmat i ve t i m e s. PA NTO NE 17-3 93 8 Ve r y Pe ri i s a symb o l o f t h e g l o bal ze i tg e i st o f t h e m o m e nt an d t h e t ra n s i t i on we are g o i n g t hro ug h. As we e m e rg e f ro m an i ntense p e ri od of i s ol at i o n, o ur n o t i o ns an d st an d ard s are chan g i n g , a n d ou r p hys i c a l an d d i g i t al l i ve s have m e rg e d i n n ew ways. Di g ita l d e s i g n h e l p s us to st re tch t h e l i mi t s o f real i ty, o p e ni n g t h e door to a d yn a m i c vi r t ual wo rl d w h e re we can ex p l o re an d create n ew col or po ssi b i l i t i e s. Wi t h t re n d s i n g ami n g , t h e ex pan d i n g p op u l a ri ty of t h e m e t ave rse an d ri si n g ar t i st i c co mmuni ty i n th e d i g i t a l s pa ce PANTO NE 17-3 93 8 Ve r y Pe ri i l l ust rate s t h e fusi on of m od e rn l i fe an d h ow co l o r t re n d s i n t h e d i g i t al wo rl d are b ein g m a n i fe s te d i n t h e p hysi cal wo rl d an d vi ce ve rsa.” h tt ps: //www. p a n to n e .co m /co lo r- o f- th e -ye a r-2022

As con s u m ers sl ow l y g row a ccusto m e d to l i fe g o i n g ba ck to “ n orm a l ,” t h ey w i l l m o st l i ke l y se e k o ut b ran d s t hat h e l p t h a t p roce s s al o n g , w h e t h e r i t ’s e m o t i o nal l y, f i nan ci al l y, o r re c rea t i on a l l y co nn e c te d . A n d t h e p o si t i ve marke t i n g asp e c t to t h i s t ra n si t i o n ri d i n g o n t h e m o m e nt um o f o p t i mi sm i s t h a t b ra n d s an d marke te rs w i l l b e ea g e r to p rovi d e t hi s s u p p or t t h ro ug h a p ro g re ssi ve an d h o p e ful o ut l o o k , w hi ch will u n d ou b te d l y b e p ro je c te d t hro ug h d e si g n, co l o rs, m e ssa g i n g, a n d m ore . “ T h e Fut ure 1 0 0 : Tre n d s a n d C h a n g e to Wa tch in 2022” — Wu n d e rm a n T h om pson In te llige n ce R e p o r t , p a g e 2

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TA B LE O F

Contents

P h oto by B rooke Cag l e on U n s p la s h

T h i s rep o r t i s a co m p i latio n o f tre n d s p ulle d f ro m a varie ty o f cre d ib le, m a rket- rel a ted s o u rce s. Th e re p o r t b e g ins with a g e n e ral ove r view o f t ren d s t h a t w i l l b e p er vasive thro ug h o ut all in d ustrie s in 2022 , an d th en f u r t h er fo cu s es o n t h e in d ustrie s o f m ul tifam ily real e state , se nio r livin g co m m u n i t i es , s t u d en t h o usin g , an d h o sp itality. Tren d s l i s t cu ra ted a n d e d ite d by Alliso n Musso lin e an d Dana Sle g e r. L ayo u t a n d d es i g n by H aley Drinkwate r. A publ i cat i on of G ood M oo d Me d ia . A ll R igh ts R e s e r ve d . Co py rig h t 2022 .

GENERAL TRENDS

The Metaverse

Augmented Ads

Audio Experiences

Comfort Commercial and Euphoric Ads

Shoppable Experiences

B2B Waste Reduction Initiatives

Biophilic Design

M U LT I FA M I LY T R E N D S

Growing Focus on ESG

Urban to Suburban and Back Again

Rise in Single-Family Rentals

Smart Buildings

Barkitecture

Mail as a Major Amenity

Modular Work

SENIOR LIVING TRENDS

Staff ing Scramble

Regional Reset

Increase in Middle Market

Memory Care Boom

Customized Care

On-Site Primary Care

Occupancy and Pricing Innovation

STUDENT LIVING

TRENDS

Regional Growth

Shifting Demographics

Affordability

Public and Private Partnerships

Graduate Student Housing

Desire for Mixed-Use Buildings

H O S P I TA L I T Y T R E N D S

Post-Pandemic Hospitality

Embracing Bleisure

Resort and All-Inclusive Destinations

Year of the GOAT

Back to Business as Usual

General Trends

The Metaverse M E TAV E R S E I S A P L AY G RO U N D T H AT B R A N D S WA N T TO P L AY O N F O R A LO N G T I M E

“ Th e term ‘ m et ave rs e’ re fe rs to a vi r t u a l rea lity spa ce in wh i ch u s ers c a n i nt era c t wit h a co m p ut er- g en erat ed env i ro n m ent , a s w e l l as w i t h on e a n ot h er. Te ch com pa nies a re ra c i n g to d eve l op t h e potent ia l o f t h e s e d i g i t a l s pa ce s , wi t h e m pha sis o n soc i a l l i fe , c u lt u re , a n d b ran d pre sen ce.” “ 2022 Tren d Repor t : T h e R oari n g 20’s A re Co m in g B a ck” — Tren d H un te r, pag e 26

“ Th e co n cept o f v i rt u a l rea l est at e is get t i ng t rac t i o n wi t h t h e p u b l i c a s t h e pop u la rity o f N F Ts h a s i n c rea s e d a n d c rea ted a sense of c u ri os i ty i n b ot h con su m ers a n d e n t re p re n e u rs .” htt ps: //www.tren dh unte r.com /t re n ds/v i r t ual- re a les tate , para. 1

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Augmented Ads AUGMENTED REALITY IS THE IN-DEMAND F O C U S F O R T H E D I G I TA L S PA C E “Au g m e n te d real i ty (A R) i s hi tt i n g t h e mai nst ream, an d con s u m e rs are sh ow i n g a g row i n g ap p e t i te fo r A R b ran d e n g a g e m e nt . Curre nt l y, t h e re are 1.5 b i l l i o n f re q ue nt use rs of A R , a n d t hi s i s fo re cast to hi t 4 . 3 b i l l i o n by 2025 , a cco rdin g to Au g u s t 2021 re search f ro m St at i st a. An d n o t ab l y, 70 % of co n s u m ers say t h ey want to see m ore A R ad s, a cco rd i n g to a Ju l y 202 1 sur vey.” “ T h e Fut ure 1 0 0 : Tre n d s a n d C h a n ge to Wa tch in 2022” — Wun de rm a n Th o m p s o n I n te llig e n ce R e p o r t , p a ge 93

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Audio Experiences AU D I O E X P E R I E N C E S A R E H E R E TO S TAY , BUT THEY NEED TO BE NEXT LEVEL

“ Wha t wa s rece n t l y con s i d e re d ‘ol d

“Luxur y b ran d s f ro m fashi o n to auto are

fas hio n ed’ is be i n g m a d e n ew a g a i n

al so i nve st i n g i n aud i o hard ware , l ux i f y in g

— aud i o - b ase d co m m u n ic at ion a n d

t h e ex p e ri e n ce … Au di o wi l l b e a key

eng ag e m e nt w i t h co nt ent a re b ein g

ch an n el for l u x u ry bran d s m ovi n g forward

revam p e d w it h a u d i o - on l y op t i on s .”

— an d a cr uci al e l e m e nt to co nsi d e r wh en

“ 2022 Tren d Repor t : T h e R oari n g 20’s A re Co m in g B a ck” — Tren d H un te r, pag e 2 2 1

“ Socia l m edia p l a t form s s u ch a s I n s t a g ram

craft i n g l uxur y ex p e ri e n ce s. “ Th e Fu tu re 1 0 0 : Tre n d s a n d C h a n g e to Watch in 2022” — Wu n d e rm a n Th o m p s o n I n te llig en ce R e p o r t , p a ge s 1 76 – 1 77

have driven a hyp e r- foc u s on vi s u a l e l e m ent s over t h e pa s t d e c a d e . N ow, e specia lly a s di g i t a l p l a t form s m a t u re a n d e n g a gem ent evol ve s , foc u s is s h i f t i n g to m ul t i s e nso ry elem ent s — a u d io, in p ar t i c ul ar , fo r a t ru l y i mm ers iv e exp e r i e nc e.” “ T h e Future 100: Tre n ds an d Ch an g e to Watch in 2022” — Wun d e rm an T h om pson Inte l l i g e n ce R epo r t , page 29

Ph o to by Ty le r N ix o n U n s p la s h

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P h oto by Kal Vi sual s on U nspl ash

Comfort Commercial and Euphoric Ads WELLNESS, JOY, AND AUTHENTICITY WILL BE A MAJOR MARKETING FOCUS AS CONSUMERS T R A N S I T I O N TO P O S T- PA N D E M I C L I F E

“As t h e wo rld g ra d u a l l y l i f t s pa n d e m i c-

“Con su m ers are seeki n g au t h ent i c,

rela ted rest ric t i on s , b ra n d s a re i n c rea s in g l y

u pl i ft i n g cont ent, an d b ran d s are m e etin g

prio rit izin g ‘ we l l n e s s ’ to h e l p ea s e p e opl e’s

t h e m o n p o si t i ve p l at fo rms, ai mi n g to

l i n gerin g a nx ie t i e s . Th is in c lu d es a d

g e n e rate joy i n t h e i r marke t i n g st rategies.”

ca mp ai g ns t hat foc u s o n com fort i n g an d re l axi ng t he m es t h at of f er a m ore p os i t i ve ou t l o o k o n t h e f u t u re t h a n wh a t h a s b e e n

“ Th e Fu tu re 1 0 0 : Tre n d s a n d C h a n g e to Watch in 2022” — Wu n d e rm a n Th o m p s o n I n te llig en ce R e p o r t , p a ge 8 6

se en in t h e la s t yea r.” “ 2022 Tren d Repor t : T h e R oari n g 20’s A re Co m in g B ack” — Tren d H un te r, pag e 41

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P h oto by G e org i a De Lot z o n U n s p la s h

Shoppable Experiences L I F E S T Y L E R E L ATA B I L I T Y I S T H E K E Y TO A CONSUMER’S HEART “Consu m ers in c rea s i n g l y ex p e c t t h a t b ran d s match t h e i r l i fe sty les a n d s oc i a l m e d i a con s u m p t i on hab i t s w h e n t r yi n g to rela te to t h e m . T h e s e m ore a u t h e n t ic i nte ra c t i o ns b re e d bra n d loya lty a m on g con s u m e rs … S h op p ab l e ex p eri en ces are th e new e st way t h at com p a n ies a re c urat i n g u n i q u e b ran ded exp e r i e nc e s fo r c u sto m ers. T h e s e ex p e ri e n ce s [can b e e i t h e r i n- perso n o r v i r t u a l a n d ] i n cl u d e eve r y thi n g f ro m sh o p pab l e h o tel ro o m s to cooki n g s h ows .” “ 2022 Tren d Repor t : T h e R oari n g 20’s A re Co m in g Ba ck ” — Tre n d Hunter, page 85

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B2B Waste Reduction Initiatives E CO - CO N S C I O U S CO N S U M E R S W I L L G R AV I TAT E TOWA R D M O R E E N V I R O N M E N T- F R I E N D LY B R A N D S

“As con s u m ers b ecom e m ore eco-fri en dl y, t h ey’re p u t t i n g mor e p res s u re on bran d s to do t h e sam e, an d to h e l p t h e m a d apt t h e i r l i fe s tyl e s to re d uce t h e i r p e rso nal i mpa c t . B ran d s t hat ma ke t h e s e a d j u s t m e nt s i n aut h e nt i c ways ap p eal to t h e g row i n g d e m og ra p h i c o f e co - co nsci o us co nsum e rs… As b ran d s l o o k to b e com e m o re e nvi ro nm e nt al l y f ri e n d l y, t h ey ’re i n creasi n g l y t u rn i n g to b usi n e sse s t hat sp e ci al i ze i n waste - re d uc t i o n. Eve r y t h i n g f ro m fo o d waste to tex t i l e waste i s n ow b e i n g a d d re s s e d an d re p urp o se d by e m e rg i n g B 2B b usi n e sse s.” “ 202 2 Tre n d R e p o r t: Th e R o a rin g 20 ’s A re Co m in g Ba ck ” — Tre n d H unter, pag e 43

P h otos by Toa H e f t i b a a n d Ta n a le e Yo u n g b lo o d o n U n s p la s h

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P h oto by Dani st S oh on U n spl ash

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Biophilic Design INCREASED GREEN SPACE IN URBAN DEVELOPMENTS AND OFFICE ENVIRONMENTS WILL BECOME MORE COMMON

“A risin g fo cu s on u rba n b i od i ve rs i ty s ee s

“Gard en p l ot s, beeh i ves an d b i rd wat c hing

com m u nit ies a rou n d t h e worl d p l a n t i n g

— t h e l at est offi ce p erks are u pl evel i ng

na t ive fo rest s i n p u b l i c s pa ce s , u n i t i n g

b i op h i l i c desi g n… ‘ Th e ove rarchi n g

peo ple to pro te c t t h e p l a n e t , rewi l d i n g

t re n d o f t h e past f i ve years has b e e n th e

c i t ies, a n d provi d i n g p l a ce s for i n te ra c ti o n…

h o te l i f i cat i o n o f t h e o ff i ce’… O ve r t h e

Cit i e s ar e m akin g ro om for m i c rofo rest s,

n ex t f i ve years, ex p e c t to se e t hi s shi ft

a llow i ng ur b an d w el lers to recon n ec t wi t h

to t h e ‘o utd o o ri f i cat i o n’ o f t h e o ff i ce a s

n at ur e a n d w ild l i fe t h a n ks to t h e s e e d i n g o f

co mpani e s b e t o n nat ure as t h e fut ure of

n ew green pu b l i c te rra i n .”

o ff i ce d e si g n.”

“ T h e Future 10 0: Tre n ds an d Ch an g e to Watch in 2022” — Wun d e rm an T h om pson In te l l i g en ce R epo r t , page 9

“ Th e Fu tu re 1 0 0 : Tre n d s a n d C h a n g e to Watch in 2022” — Wu n d e rm a n Th o m p s o n I n te llig en ce R e p o r t , p a ge 207

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Multifamily Trends

Growing Focus on ESG W H E N I T CO M E S TO R E A L E S TAT E , E N V I RO N M E N TA L , S O C I A L , A N D G OV E R N A N C E ( E S G) I N I T I AT I V E S W I L L P L AY A S I G N I F I CA N T RO L E T H I S Y E A R “Impa c t s w ill n ot on l y com e i n t h e form o f l e g i sl at i o n… b ut al s o f ro m federa l re g u l a t i on . Th e S ec u r i t i es an d Ex ch an g e Com m i s si o n (S E C ) is ex p ec t ed to i s s u e ru l es to i m prove ESG re p o r t i ng co ns i st en c y a c ros s va riou s di scl osu res an d rep ort s to inv e sto rs . T h es e r u l e s wi l l tou ch on ea ch o f t h e ESG p ri n ci p l e s, i n clu din g clim a te ch a n g e , h u m a n c a p i t al mana g e m e nt an d b oard di versity… I n rea l e s t a te te rm s , E S G wi l l l ea d to m o re d e man d fo r e f f icient bu ildi n g s a n d re t rof i t s .” “ 2022 U. S . Real Estate M arke t Out l ook” — CB R E , p a ge 9

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Urban to Suburban and Back Again N OW T H AT C AU T I O N A RY M E A S U R E S A R E B E I N G MINIMIZED DUE TO A REDUCTION IN COVID-19 CASES, THERE IS A RENEWED INTEREST IN M U LT I FA M I LY H O U S I N G “ D ow ntown m u l t i fam i l y prop ert i es are fi l l i n g b ack u p and o c c u p a n cy rat es are n eari n g pre-pan d em i c l evel s, sp urred by a con fl ue n ce o f fa c to rs: fewe r re st ri c t i o ns o n urban a m e n i t i e s, hi g h e r va cci nat i o n rate s, a g row i n g w i l l i n g n e s s to u s e p u b l i c t ransi t , t h e re o p e ni n g o f co l l e g e camp use s an d m ore worke rs re t urni n g to t h e o ff i ce .” “ 202 2 U. S . R e a l Es ta te Ma rke t O u tlo o k ” — C BR E , p a g e 3 0

I t ’s e s t i mate d t hat “U. S . o ff i ce wo rke rs w i l l sp e n d an ave ra ge of 3 .4 d ays p e r we e k i n t h e o ff i ce g o i n g fo r ward , d ow n a fu ll d ay f rom t h e 4 .4 - p e r-we e k ave ra g e i n 2018 . W h i l e l i vi n g near t h e of f ice m ay n ot b e as i m p ort ant i n t h e fu t u re, i t w i l l still rema in a key con si d erat i on for m any rent ers.” “2022 U.S. Real Estate Market Outlook” — CBRE, page 32

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Rise in Single-Family Rentals S I N G L E - FA M I LY R E N TA L S A R E N ’ T N E W T O T H E R E A L E S TAT E S C E N E , B U T T H E PA N D E M I C D I D G E N E R AT E A S I G N I F I C A N T INCREASE IN INTEREST DUE TO WANTING MORE PRIVACY

“ Th e sin gle -fa m i l y re n t a l m a rke t wi l l g a i n t ra c t i o n w i t h b o t h re nte rs an d i nve sto rs as m ore mi llennia ls rea ch ch i l d - rea ri n g l i fe s t a g e s. Urban apart m ent operators w i l l rel y m ore on Ge n Z to b ac kfil l t h e res u l t in g va c a n c i es.” “ 2022 U. S . Real Estate M arke t Out l ook” — CB R E , p a ge 32

“ Th e pa n dem ic c rea te d a n u n p rec ed ent ed de m and am o ng rent ers for s p a c e a n d pri vacy, wh ich h o u ses c a n a d d re s s m u ch b e tte r t han apa r t m ent s… Accord i n g to a re ce n t s u r vey of 3 , 30 0 renters on re n tc a fe .com , a s m any as 78% sa id t h ey we re i n te re s te d i n l i vi n g i n a com mu nity o f s i n g l e - fa m i l y h om e s .” htt ps: //www. rentcafe .com / bl og /re ntal - m arket/m a rke ts n apsh o ts/bui lt- to - re nt- si n g l e - fam i l y- h om es - d o u b le in-2022 / — para. 2 an d 3

“ Th e nu mber o f h i gh er- i n co m e Mi ll en ni al s w h o a r e r e nt i ng i nst ea d of b u y i n g a h o m e is o n t h e ri se.” htt ps: //www. rentcafe .com / bl og /re ntal - m arket/m a rke ts n apsh o ts/mi l l en n i al - l i fe sty l e - re n t i n g / — pa ra . 1

Ph o to by Ka ra Ea d s o n U n s p la s h

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Smart Buildings T H E PA N D E M I C G E N E R AT E D A D E M A N D F O R S M A RT T E C H N O LO GY T H AT F O S T E R S CO N TA C T L E S S E N T RY “Fro m key less l ocks to s m a r t e l eva tors , i nte l l i g e nt- b ui l d i n g mana g e m e nt sys tems a re like l y t h e f u t u re for m a ny m ult i fami l y d eve l o p m e nt s. [B ri tt De si g n Gro u p] says ‘ po s t- pa n d e m i c con t a c t l e s s e nt r y i s key. We w i l l st ar t to se e this m o re a n d m ore i n m u lt i fa m i l y d e s i g n m ovi n g fo r ward . D evel opers are inco r p o rat i ng h a n d s - f ree ent ry syst em s to g et i n an d ou t of t h e p rem i ses an d pe rso nal l i v i ng s p a c es , rep la c i n g a k ey wi t h t h e wave of a card or key fob.’ ” https: //www. mult i fam i l yexe c ut i ve .com /de si gn - d eve lo p m e n t/d e s ign / 1 0 - d e s ig n - tre n d s s h api n g-multi fam i l y- bui l di n g s- i n-202 2 _o — p a ra . 1 1

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Barkitecture L I F E S T Y L E R E L ATA B I L I T Y I S T H E K E Y TO A CONSUMER’S HEART “ Th e pet ca re in d u s t r y i n N or t h A m e ri ca co nt i nue s to g row, an d peo ple a re p u tt i n g m ore c a re i n to t h e i r p e t s’ l i fe styl e s as th ey t r y to a ccom m od a te for t h i n g s l i ke spat i al sh o r tco mi n g s. Wi t h m o re peo p l e i n u rba n a rea s a n d l i vi n g i n smal l e r h o m e s an d a pa r t m ent s , i nt egrat ed p et - f rien dl y h om e feat u res are par t i c ul ar l y us ef u l… H om e d e s i g n b ra n d s are a d ap t i n g to t h e n eeds o f pet own e rs wi t h f u rn i s h i n g s t hat are ma d e fo r human use, bu t t ha t h ave p e t- f ri e n d l y fea t u re s t hat al l ow fo r ani mal use to o. T h ese i n cl u d e eve r y t h i n g f rom seat i n g so l ut i o ns to e nter t a inm ent u n i t s .” “ 2022 Tren d Repor t : T h e R oari n g 20’s A re Co m in g Ba ck ” — Tre n d Hunter, page 20 4

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Mail as a Major Amenity W H AT WA S O N C E CO N S I D E R E D TO B E A T R A D I T I O N A L MAILROOM IS NOW BEING CONVERTED INTO DESIGNED AMENITY SPACES “ T h e i n c rea se i n d e l i ve r y- base d co nsum e ri sm i s d i re c t l y i mpa c tin g m u lt i fa m i l y d e si g n, w i t h spa ce s to a cco mm o d ate pa cka g e s of a ll s h a p e s a n d si ze s... ‘Spaci ou s an d m u l t i fu n ct i on i n g m ai l rooms a re a b ig t r en d m ovi n g forward ’… ‘ Th e mai l ro o m i s n o t an a f te r t h ou g ht ; i t i s a majo r am e ni ty.’ M ai l ro o ms are b e i n g d esign ed wi t h l a rg e r l ayo ut s w i t h mult i p l e typ e s o f sto ra g e an d p i cku p a rea s a n d w i t h eye - catchi n g d e si g ns.” h tt ps: //www. mu ltifa m ilyexe c u tive .co m /d e s ign - d eve lo p m e n t/d e s ign/ 1 0 de si g n- t re n d s - s h a p in g- m u ltifa m ily- b u ild in g s - in -2022 _o — p a ra . 5

2022 TRENDS REPORT l 23

24 l 202 2 T RE N D S R E P O RT

Modular Work T H E PA N D E M I C F O R C E D A WO R K- F RO M - H O M E S I T UAT I O N A C RO S S T H E N AT I O N , A N D N OW T H AT I T ’ S B E CO M E PA RT O F A N E W N O R M , D E S I G N O P T I O N S TO A C CO M M O DAT E T H I S F L E X I B L E L I F E S T Y L E A R E I N C R E A S I N G

“Now t ha t wo rk- f rom - h om e c u lt u re i s

“M o d ul ar h o m e o ff i ce syste ms are

l i ke ly to rem a in t h e n orm i n t h e l on g term,

b e co mi n g m o re p o p ul ar as wo rki n g f rom

pe o p l e r e q ui r e at - h om e workst at ion s

h o m e has b e co m e t h e n o rm si n ce COVID -19

th at c at e r to t h eir l if est y les at h o m e.

was d e cl are d a pan d e mi c . Th e se systems

Fea t u res like p ri va cy a n d m od u l a ri ty a re

al l ow for con su m ers to b u i l d offi ces at

i mpo r t a nt fo r p e op l e worki n g f rom h om e

h om e i n ways t h at are si m pl e an d spatially

— pa r t icu la rly for t h os e wi t h fa m i l i e s ,

fu n ct i on al .”

room m a tes, a n d /or s m a l l l i vi n g s pa ce s .” “ 2022 Tren d Repo r t : T h e R oari n g 20’s A re Co m in g B a ck” — Tren d Hun te r, pag e 208

“ 2022 Tre n d R e p o r t: Th e R o a rin g 20 ’s A re Com i n g Ba ck ” — Tre n d H u n te r, p a ge 1 92

2022 TRENDS REPORT l 25

Senior Living Trends

Staffing Scramble W I T H I N T H E O V E R A L L H E A LT H C A R E I N D U S T R Y , L A B O R ISSUES WILL CONTINUE TO BE A CHALLENGING ISSUE

“[ T h e] t ra dit io n a l f u l l- t i me em p l oy ee (FT E) wi l l b ecom e a rarer br e e d in senio r l i vi n g com m u n i t i e s a c ross t h e co unt r y.” htt ps: //seni o rh o usi n g n ews.com / 202 2 /01/02 /to p - s e n io r- h o u s in g- tre n d s for-2022 / — para. 42

“ Th e goa l [w ill b e ] to re s p on d to t h e s h i ft i n wo rke r ex p e c t at i o ns an d preferen ce s t h a t h a s occ u rre d d u rin g t h e Covi d pan d e mi c , as p e o p l e hav e reeva l u at ed t h e work- li fe bal an ce t h ey want to stri ke… O t h er p rovi d e rs a l s o wi l l of fe r m o re fl ex i b l e , par t- t i m e an d o n- dem a n d s ch e d u l i n g . Te ch n ol og y w i l l b e key to e nab l i n g th ese ef fo r t s.” htt ps: //seni o rh o usi n g n ews.com / 202 2 /01/02 /to p - s e n io r- h o u s in g- tre n d s for-2022 / — para. 4 6 an d 47

28 l 202 2 T RE N D S R E P O RT

Regional Reset R E G I O N A L O P E R ATO R S W I L L B E G I N TO S H I F T T H E SENIOR LIVING INDUSTRY BY DRIVING OCCUPANCY A N D F O C U S I N G O N WO R K F O R C E S TA B I L I T Y

“ T h e l a s t 12 m o nt hs we re d e f i n e d by t h e ‘ ri se o f re g i o nal s ,’ a s ma ny reg i on al operators rapi dl y g ai n ed scal e t h rou g h a s l ew of acq u i si t i on s an d m an ag em ent t ran si t i on s. Th e n ext yea r wi l l b e ab o ut t h e ‘ re g i o nal re se t ,’ as t h e se p rovi d e rs s t a r t to re shap e t h e i n d ust r y. I n par t i cul ar, re g i o nal s are ex p e c te d to d ri ve o ccupan cy an d wo rk fo rce st ab i l i ty t hro u gh a l oc a l i zed ap p roa ch to sal e s, marke t i n g an d hi ri n g … Ad d i t i on al l y, ow n e rshi p g ro up s ap p ear to b e i n creasi n g l y awa re of t h e n e e d to m o re cl o se l y al i g n i nte re st s w i t h op e ra tors an d e nsure t hat t h ey are we l l - cap i t al i ze d e n o ugh to i nve s t i n te chn o l o g y.” h tt ps: //se n io rh o u s in g n ews .co m / 2022 /01 /02 /to p - s e n io r- h o u s in gt re n ds- for-2022 / — p a ra . 22 , 23 , a n d 25

Accord i n g to a sur vey co n d uc te d by Lum e nt an d Se ni o r H ou s i n g News, 19% o f par t i ci pant s b e l i eve re g i o nal o p e ra tors wi l l b e t h e majo r b uye rs o f se ni o r h o usi n g asse t s. “ 202 2 S e ni o r H o u s in g O u tlo o k S u r vey R e p o r t” — Lu m e n t a n d S e n i or H ousi n g N ews , p a ge 8

2022 TRENDS REPORT l 29

Increase in Middle Market Th e t ren d fo r 202 1 re f l e c te d “ t h e ra p i d g row t h tra jec to r y o f t h e 75 + m i d d le m a rk et [was] mor e d ram at i c t h a n t h e g row t h of l owi n co m e elderly for t h e f i rs t t i m e i n m e m o r y… Governm ent-su b s i d i ze d p rog ra m s h e l p prov ide a lterna t i ve s for l ow- a n d ve r y l owi n co m e fa m ilie s , a n d t h e re a re L i fe P l a n Com m u nit ies for u p p e r m i d d l e - a n d u p p e ri n co m e elders, b u t t h e 5 6% of ol d e r a d ult s tha t a re in t h e m i d d l e m a rke t a re fa l l i n g between t h e cra cks .” “ Seni o r Ho usi n g Tre n ds: 202 1” — Love & Com p a ny, p a ge 20

However, t h e t re n d t h i s yea r i s s h i f t i n g to wh ere “m o r e se n i o r l iv in g p rov id ers w i l l m ake go o d o n t he i r p la n s to s erv e m i d d le- m arket cons um e rs i n 2 0 2 2 .” Accord i n g to t h e Se ni o r Li vin g N ews 202 2 S e n i or H ou s i n g O u t l oo k Sur vey Repo r t , m ore 4 0 % of p rovi d e rs pl an to repo sit io n ex ist i n g m a rke t ra te com m uni t i e s to ser ve t h e mi d d l e m a rke t , wh i l e 26% p l an to develo p n ew m i d d l e - m a rke t u n i t s . https: //seni o rh o u si n g n ews.com / 202 2 /01/02 /to p s e ni o r-h o usi n g- t re n ds- for-202 2 / — para. 18 “ 2022 Seni o r Ho u si n g Out l ook S ur vey R e por t” — Lum ent an d Seni or H ousi n g N ews, pag e 10

30 l 202 2 T RE N D S R E P O RT

Memory Care Boom THOUGH MEMORY CARE PROGRAMS HAVE E X P E R I E N C E D D I F F I C U LT Y T H E PA S T F E W Y E A R S , THEY ARE NOW POSITIONED TO THRIVE

“Mem o r y ca re a d d e d t h e m os t occ u pa n cy o ut o f any se nio r h o u sin g typ e b e twe e n t h e s e con d an d t hi rd qu a r ters o f 202 1 … In n ovat ion i n mem ory care al so i s playi ng a ro l e in at t ra c t in g res i d ent s . De sp i te — o r d ue to — t h e cha lle n g e s t h a t m e m or y c a re has fa ce d , so m e prov iders have i nve s te d t i m e a n d m on ey i n re ce nt years i n reva mpin g t h e i r m e m or y c a re of fe ri n g s, an d t h ey are poi sed to be rewa rd e d .” htt ps: //seni o rh o usi n g n ews.com / 202 2 /01/02 /to p - s e n io r- h o u s in gt ren ds- fo r-2022 / — para. 6 5 an d 74

2022 TRENDS REPORT l 31

Customized Care and Personalization I N A N A G E O F P E R S O N A L I Z AT I O N , I T W I L L B E I M P E R AT I V E T H AT S E N I O R L I V I N G CO M M U N I T I E S C R E AT E C U S TO M I Z E D E X P E R I E N C E S F O R R E S I D E N T S

For exa m ple, M a t h e r — a l a rg e s e n i or l i vi n g p rovi d e r d e d i cate d to perso na liz a t i on — c rea te d a n ew we l l n e ss f ram ewo rk base d o n this qu est io n: “ ‘At a t i m e wh e n vi r t u a l l y eve r y t hi n g e l se aro un d us ca n be cu stom i ze d , s h ou l d n’ t ou r wel l n e ss p l an b e as we l l ? ’ Mat he r ’s ‘ p e rso n - c ent ric w el ln es s m odel ’ i s m eant to rep l ace th e t yp i c al ‘s i x d im en s ion s of w ell n es s’ t h at m any provi ders u se to o r g ani ze t h eir res id ent ex p erien c e p rog ram s. To d ri ve t h e m ore in div idu a l i ze d a p p roa ch , Ma t h e r i s d eve l o p i n g a we l l n e ss assessm ent to ol a n d i s e n g a g e d i n a we l l n e ss coa chi n g i ni t i at i ve , e nv isio nin g t ha t s u ch coa ch e s wi l l p l ay an i mp o r t ant ro l e i n wo rkin g w it h re s i d e n t s on t h e i r u n i q u e we l l n e ss p l ans.” https: //seni o rh o u si n g n ews.com / 202 2 /01/02 /to p - s e n io r- h o u s in g- tre n d s for-2022 / — para . 81, 84 – 86

32 l 202 2 T RE N D S R E P O RT

On-Site Primary Care Is a Must THERE IS A SHIFT FROM ON-SITE PRIMARY CARE SERVING AS AN OPTIONAL AMENITY TO BEING A N E E D E D H E A LT H C A R E A S S E T I N C O M M U N I T I E S

“ I n 202 2 , on - si te pri m ary care w i l l reach a t i ppi n g poi nt , g oing f rom a ‘ n ic e -to-h ave’ to a ‘m u st h ave.’ Th e t i p p i n g p o i nt wi l l a rri ve for seve ral reaso ns. O n e i s t h e co nt i nual g row t h of Me d i c a re Ad vant a g e (M A) w i t hi n t h e se ni o r l i vi n g se c to r.” h tt ps: //se ni orh o u s in g n ews .co m / 2022 /01 /02 /to p - s e n io r- h o u s in g - tre n d s for-202 2 / — p a ra . 5 4

“ Con s u m e r ex p e c t at i o ns al so w i l l d ri ve m o re se ni o r l i vi n g p rovi d e rs to o ffe r o n- si te p ri mar y care . Re si d e nt s an d t h e i r l ove d on e s are m o re att un e d to h ealt h care o ffe ri n g s i n l i g ht of Covi d -1 9, an d l i mi t i n g ex p o sure to crowd s i n d o c to rs’ o ff i ces a n d h os p i t a l s has n eve r b e fo re b e e n such a hi g h p ri o ri ty… As t h e s en i o r l i vi n g provi der becom es a care coordi n ator, i t als o st a n d s to reason t h at sen i or l i vi n g com m u n i t i es i n creasi n gly b eco m e h u bs for a vari et y of servi ces, n ot j u st p ri m ary care. H ea lt h sys te m par t n e rshi p s t hat b ri n g co n ci e rg e - styl e care into s e n i or l i vi n g are re sp o n d i n g to t hi s i mp e rat i ve .” h tt ps: //se ni orh o u s in g n ews .co m / 2022 /01 /02 /to p - s e n io r- h o u s in g- tre n d s for-202 2 / — p a ra . 5 9 a n d 6 2

2022 TRENDS REPORT l 33

34 l 202 2 T RE N D S R E P O RT

Occupancy and Pricing Innovation N E W P R I C I N G S T R AT E G I E S W I L L A N C H O R A C RO S S T H E INDUSTRY AS PROVIDERS SEEK TO INCREASE OCCUPANCY

“In recent yea rs , m ore p owe r f u l b u s i n e s s i nte l l i g e n ce (B I ) capab i l i t i e s have st a r ted to e n a b l e a n ew a p p roa ch to se ni o r l i vi n g p ri ci n g … [ Prov iders] a cros s t h e i n d u s t r y a re p u s h i n g to re g ai n o ccupan cy w hi l e al so pro tec t in g m a rg i n s t h a t a re u n d e r i n cre d i b l e p re ssure … [ Th e n ew B I ca pa bili t i e s ] wi l l e n a b l e p rovi d e rs to ‘unb un d l e’ t h e i r p ri ci n g , w hich sh o u ld d ri ve s a l e s by a l l owi n g ope rato rs to o ffe r p ro sp e c t s m o re c usto mized pa cka g e s , wh i l e a l s o e n s u ri n g t hat o p e rato rs’ reve nue cl o sely a ligns wi t h wh a t t h ey a re d e l i veri n g to re si d e nt s. Dat a-dri ven , unb und l e d p r i c i n g a ls o w il l g a i n im p ort an ce as m ore m i ddl e-m arket pro d uc t co m e s to m a rk et. S e tt i n g ra te s at t h e ap p ro p ri ate l eve l an d offerin g so m e a l a c a r te s e r vi ce s a re e s p e ci al l y i mp o r t ant i n t h e se em ergin g m o d e l s , wh i ch a re roote d i n ti g ht ex p e nse mana g e m e nt w hile o f ferin g a p rod u c t t h a t re s i d e n t s se e as a g o o d val ue .” htt ps: //seni o rh o u si n g n ews.com / 202 2 /01/02 /to p - s e n io r- h o u s in g - tre n d s - fo r-2022 / — para. 32 , 34–36

2022 TRENDS REPORT l 35

Student Living Trends

Regional Growth A C C O R D I N G T O T H E N AT I O N A L M U LT I FA M I LY H O U S I N G COUNCIL, STUDENT HOUSING IS SET TO EXPERIENCE SIGNIFICANT GROWTH

NMH C est im a te s t h a t “ t h e s t u d e n t h ousi n g marke t w i l l g row f rom a to t a l o f 8 .5 m i l l i on b e d s i n 2020 to 9. 2 mi l l i o n by 203 1 (an i n c rea se o f 734 ,0 0 0 b e d s ) , or a n av era ge an n u al i n crease of 0 . 8% pe r ye ar, a n d t h a t m os t of t h a t g row t h w i l l t ake p l a ce i n p ub l i c fou r-yea r u nive rs i t i e s .” “ T h e Future o f U. S . S t ude n t H ousi n g De m an d ” — N MH C W h ite Pa p e r, J u ly 2021, page 5

However, lo ca t i on wi l l b e a c ri t i c a l fa c to r to co nsi d e r w h e n i nvest in g: “Re gi o n a ll y , h a l f of t h e 18 - to 2 4 -year-ol d popu l at i on [cu r r e nt l y] r e s id es in t h e So u t h At l a nt i c, Paci fi c an d East Nort h Cent ral ar e as of t h e U.S.” “ T h e Future o f U. S . S t ude n t H ousi n g De m an d ” — N MH C W h ite Pa p e r, J u ly 2021, page 23

“Texas , by far , h a s t h e la rgest u p com i ng you n g p op u l at i on — t h e pop ul at i o n i n t h at a ge ra n g e is ex p ec ted to i n crease by 3. 6% , or m o r e t han 10 0 , 0 0 0 p eo p l e. S i m i l a rl y, Neva d a, Washi n g to n an d M inn eso t a a re ex p e c te d to ex p e ri e n ce si g ni f i cant g row t h. In co nt ra st , seve ra l N or t h ea s te rn s t a te s have o l d e r, l owg row t h po pu la t i on s . A b s e n t i n - m i g ra t i on, t h e 18 - to 24 -yearol d po pu la t io n wi l l s h ri n k i n N ew York , M assa chuse tt s an d Pe nnsy lva nia . I n te re s t i n g l y, t h e s e s t a te s are h o m e to so m e o f t h e hi g h est qu a lity p os t- s e con d a r y e d u c a t io nal i nst i t ut i o ns i n t h e wo rld.” “ T h e Future o f U. S . S t ude n t H ousi n g De m an d ” — N MH C W h ite Pa p e r, J u ly 2021, page 24

38 l 202 2 T RE N D S R E P O RT

Shifting Demographics T H E I N C R E A S E O F P O P U L AT I O N F O R CO L L E G E -A G E STUDENTS WILL CONTINUE TO BOOST THE NEED FOR STUDENT HOUSING “ 4 6 mi ll ion peopl e wi l l reach col l eg e ag e i n t h e U. S. over t h e n ex t 10 years. Thi s d e m o g rap hi c t re n d p re d i c t s t h e d e m a n d fo r st ud e nt h o usi n g w i l l re mai n ro b ust , si n ce t his is on l y a s l i g ht d e cl i n e f ro m t h e p eak d e ca d e o f t h e p revi o u s g e n e ra t i on. Howeve r, t h e d e m o g rap hi c p ro f i l e o f st ud e nts wi l l ch a n g e co nsi d e rab l y, so st ud e nt h o usi n g ow n e rs w i l l n e e d to be m o re d i sce rni n g .” “ S t r uc t ura l C h a n g e s in S tu d e n t H o u s in g D e m a n d ” — N MH C W h i te Pape r, J ul y 2021 , p a g e 7

“ G e n Z i s m o re d i ve rse t han p ri o r g e n e rat i o ns. O n e i n fo u r m e m b e rs o f t hi s g e n e rat i o n are Hi spani c , 14% are B l a ck an d 5% a re Asi an. Over t h e n ex t fi ve years, al l n et g row t h i n the co l leg e- a g ed p op u l at i on w i l l b e from peopl e i d ent i fyi n g as H i s p a n ic an d Ot h er races.” “ S t r uc t ura l C h a n g e s in S tu d e n t H o u s in g D e m a n d ” — N MH C W h i te Pape r, J ul y 2021 , p a g e 9

2022 TRENDS REPORT l 39

Affordability AFFORDABILITY WILL CONTINUE TO BE A PRIMARY FOCUS F O R S T U D E N T H O U S I N G TO A C CO M M O DAT E T H E D I V E R S I T Y O F H O U S E H O L D I N CO M E S A N D P O S T- PA N D E M I C I M P L I C AT I O N S

“The i nc r e as e d d i v ers it y of t h e st u d ent po p ul at i o n co u ld m a k e af fo rd a b il it y more imp o r t ant sin ce t h e m e d i a n i n com e i s o nl y $5 1,4 0 0 fo r H ispa n i c h ou s e h ol d s a n d $ 41, 3 61 for B la ck h o u se h ol d s , com pa re d to n on Hi spa nic w hite h ou s e h ol d s ($70,6 42 ) a n d Asia n h o u seh ol d s ($ 8 7,1 9 4 ) .” “ Struc tural C h an g e s i n S t ude n t H ousi n g De m a n d ” — N M HC Whi te Pape r, J ul y 202 1, pag e 10

“[ T h e] COVI D ‐1 9 pa n d e m i c wi l l [a l s o] l i ke l y have lo n g‐la st i n g i m p l i c a t i on s on t h e s t ud e nt h o u sin g m a rke t , p rim a ril y i n t h e fo rm of re d uc e d st at e b u d g et s fo r p u b li c s c h ool s, th e m ost co nsi st ent gen erators of st u d ent h ous i ng d e m an d. T h i s wi l l l i ke l y p u t u pward pre ssu re o n t ui t i on ra te s , wh i ch wi l l c reate hi g h er dem a n d for a f ford a b l e h ou s i n g .” “ Struc tural C h an g e s i n S t ude n t H ousi n g De m a n d ” — N M HC Whi te Pape r, J ul y 202 1, pag e 2 5

40 l 202 2 T RE N D S R E P O RT

Public and Private Partnerships P U B L I C- P R I VAT E PA RT N E R S H I P S , A L S O K N OW N A S P 3 S , M AY B E T H E A N S W E R TO B R I N G I N G A D D I T I O N A L FUNDING TO THE STUDENT HOUSING SECTOR

“ While t h e lo n g - te rm i m pa c t of t h e

A re nt Fox — a D.C .- base d l aw f i rm t hat

COVI D -19 pa n d e m i c on on - c a m p u s h ou si n g

re p re se nt s e d ucat i o nal i nst i t ut i o ns,

occ u pa n cy a n d d e n s i ty i s ye t to b e s e e n,

i nve sto rs an d un d e r w ri te rs i n e d ucat i ona l

a r e d uc t i o n i n rev en u e f rom t h e c u rrent

f i nan ci n g t ransa c t i o ns — p redi ct s t h i s P 3

re c e ss i o n w i l l m a k e it d i f f ic u l t fo r s c h ool s

p art n ersh i p t ren d wi l l cont i n u e as co lleges

to i m p l e m e nt s p en d i n g p rog ra ms fo r

d eal w i t h con st ru ct i on cost i n creases and

h ousi ng w hich m ay b e n e e d e d to i m p rove

l ab or sh ort ag es.

th e h ea lt h qu al i ty of b u i l d i n g s a n d to att ra c t n ew st u d e n t s . T h i s m ay i n c rea s e t h e n eed fo r u nivers i t i e s to i m p l e m e n t p u b l i cpriva te pro gra m s .”

h ttp s : //www.s tu d e n th o u s in gb u s in e s s .co m / h e a lth - co m fo r t- a n d - a ffo rd a b ility- a re - to p - ofm in d - fo r- s tu d e n t- h o u s in g- d eve lo p e rs - a n dre s id e n ts / — p a ra . 1 3

“ T h e Future o f U. S . S t ude n t H ousi n g De m an d ” — NMHC Whi te Pap e r, J ul y 202 1, pag e s 27 – 2 8

2022 TRENDS REPORT l 41

Graduate Student Housing NOT ALL STUDENTS WHO ENTER COLLEGE ARE FRESHMEN, AND PLANS NEED TO BE IN PLACE TO MEET THE INCREASE FOR AGE 25-PLUS ENROLLMENT

“Gi ven a n in crea s i n g d e m a n d for e d u c a te d jo b s an d t h e l arg e mi llennia l po p u l a t i on n ow a g e d 24 to 40, a reaso nab l e arg um e nt cou ld be m a de for f u rt h er i n c rea s i n g en rol l m ent i n post bac c al aur e at e p ro g ra ms.” “ T h e Future o f U. S . St ude nt H ousi n g De m an d ” — N MH C W h ite Pa p e r, J ul y 2021, page 26

NMHC pro jec t s u n d e rg ra d u a te b e d s a t p ub l i c fo ur-year i ns t it u t io ns “to i n c rea s e by 4 4 8 , 0 0 0 f rom 2 0 2 0 t h rou g h 2 0 31, wit h anot he r 112 , 0 0 0 n eed ed fo r g ra d uat e st u d ent s,” w h e reas at priva te fo u r-yea r u n i ve rs i t i e s , t h e re i s an ex p e c t at i o n t hat “ th e dem a n d fo r n ew b e d s [ wi l l ] p ri m a ri l y co m e f ro m g ra d uate progra ms, w h e re a n a d d i t i on a l 9 6 ,0 0 0 b e d s w i l l b e n e e d e d .” “ T h e Future o f U. S . St ude nt H ousi n g De m an d ” — N MH C W h ite Pa p e r, J ul y 2021, page 5

42 l 202 2 T RE N D S R E P O RT

Desire for MixedUse Buildings TO S TAY I N L I N E W I T H CO M P E T I TO R S A N D K E E P U P WITH THE DEMAND OF RESIDENTS, FACTORING IN MIXED-USE WILL BE A PREFERRED AMENITY

“ G oi n g for ward , t h o se l o o ki n g to d eve l o p o r a cq ui re st ud e nt h ou s i n g m ust i n creasi n g l y an d p roa c t i ve l y m e e t t h e d e man ds of tod ay ’s s t ud e nt s fo r conven i en ce t h rou g h am en i t i es, d esign a n d a d va n ced t ech n ol og i es. Fur t h e r, as an ex te nsi o n o f t h e g rea te r t re n d i n real e st ate , st ud e nt h o usi n g i s i n creasi n g l y b e i n g p os i ti o n e d at t h e ce nte r o f mi xe d - use d eve l o p m e nt s tha t a l s o fea t u re a co mb i nat i o n o f co mm e rci al , o ff i ce , h o sp i t al i ty a n d ot h e r u s e s . B y nat ure , mi xe d - use p ro je c t s are p e r fe c t l y sui ted to s t u d e n t h ousi n g , b e cause st ud e nt s — e sp e ci al l y t h e curre nt Gen Z g e n e ra t i on — d e si re to have t h e wo rl d at t h e i r f i n g e r t i p s a n d b e i n t h e m i d d l e o f t h e a c t i o n. h tt ps: //www. n a a h q .o rg /n o d e / 3 6 8 1 2 /a r ticle /m ixe d - u s e - m a ke s - s e n s e st ude n t- h ous in g — p a ra . 1 3 – 1 5

2022 TRENDS REPORT l 43

Hospitality Trends

Post-Pandemic Hospitality CONSUMER BEHAVIOR WILL CONTINUE TO BE IMPACTED F RO M T H E P E R S P E C T I V E O F W H AT WA S E N D U R E D DURING THE PANDEMIC “As co nsu m ers l ook to re s u m e t h e i r n ormal l i ve s p re - pan d e mi c , th e psych o lo gi c a l i m pa c t f rom ex p e ri e n ci n g t h e wo rst o f t h e pan dem ic w ill s t i l l a f fe c t t h e i r con s u m p t i o n b e havi o rs. Th ese ind i v i d ual s ar e t u rn in g to b ra n d s t h at pri ori t i z e safet y as m u ch a s t hey d o exp eri en c e a n d s erv ic e, s o t h ey can feel com fort ab l e i n t h e pro cess of re s u m i n g eve r yd ay l i fe.” “2022 Trend Report: The Roaring 20’s Are Coming Back” — Trend Hunter, page 59 “ Th e h o spit a lity i n d u s t r y wi l l t a ke s om e t i m e to ful l y re cove r f rom t h e eco n o m i c h i t s i t ’s t a ke n a s a re sult o f t h e COVI D -19 pan dem ic , bu t [ i t ’s ] g ea ri n g u p for a n u p t i ck i n d e man d a nyway. N ew m ea s u res a n d p ro d u c t s t hat p ri ori t i z e safet y a nd s ani t i zat i o n a re in c rea s in g ly im p ort ant to b usi n e sse s an d c us to m ers in t h i s s pa ce .” “2022 Trend Report: The Roaring 20’s Are Coming Back” — Trend Hunter, page 59

P h oto by Si m on Kare m an n o n U n s p la s h

46 l 202 2 T RE N D S R E P O RT

Embracing Bleisure B U S I N E S S A N D L E I S U R E T R AV E L W I L L C R E AT E BLEISURE OPPORTUNITIES WITHIN THE H O S P I TA L I T Y A N D T R AV E L I N D U S T RY

“ B u s i n e s s an d co nve nt i o n t rave l w i l l sl ow l y re b o un d , w i t h ‘b l e i s u re’ b e co mi n g m o re co mm o n as b usi n e ss t rave l , st i ll l e s s f re q ue nt , w i l l i n cl ud e addi t i on al l ei su re t ravel d ays.” “2022 U.S. Real Estate Market Outlook” — CBRE, page 36 “ Th e a b i li t y to work from h om e i s profou n d l y, an d p erm a n e nt l y, ch an g i n g t h e way w e t ravel . M o re l e ni e nt of f i ce p o l i ci e s m ean many wo rke rs can t rave l any t i m e , even d u ri n g b usy wo rkwe e ks, as l o n g as t h ey can hi t d ea d l i n e s f rom fa r af i e l d . That , i n t urn, has ma d e i t easi e r fo r p e o p le to t rave l m o re f re q ue nt l y an d fo r l o n g e r am o unt s o f t i m e .” htt ps: //www.b lo o m b e rg.co m /n ews /a r ticle s / 2022- 02- 07/ h ow-wo rki n gf rom - h om e -w ill- p e rm a n e n tly- ch a n g e - th e -wa y-we - tra ve l — para. 3

“ B e c a u s e re m o te wo rke rs re p re se nt a w h o l e n ew marke t for t h e t rave l i n d ust r y to cap t ure , accom m odat i on s p rovi d ers w il l b e ra ci n g to m eet t h ei r n eed s — i f t h ey have n’ t d o n e s o a l rea dy. Fo r l ap to p l ug g e rs, h o m e re nt al s have t h e u p p e r h a n d … b e cause t h ey o ffe r spa ce to sp rea d o ut an d to s e pa ra te wo rk f ro m p l ay.” htt ps: //www.b lo o m b e rg.co m /n ews /a r ticle s / 2022- 02- 07/ h ow-wo rki n gf rom - h om e -w ill- p e rm a n e n tly- ch a n g e - th e -wa y-we - tra ve l — para. 19

2022 TRENDS REPORT l 47

Resort and All-Inclusive R E S O RT A N D A L L- I N C LU S I V E D E S T I N AT I O N S W I L L CO N T I N U E TO TO P T H E L I S T A S T H E M O S T I N - D E M A N D LO C AT I O N S A S T R AV E L P I C KS U P

Th o u gh t ravel i s ex p e c te d to i n c rea s e t hi s yea r, “[t h e] ben e f i t s wi l l n ot b e u n i form . R eso r t s a n d al l - in c lu s i v e d est in at i o n s wi l l cont i nue to b e st ron g p erfo rm ers in 2 02 2 as trave l e rs se e k s im p l ic it y a n d p ri c e c er t ai nt y… Ha rder-hit ma rke t s l i ke S a n Fra n c i s co a n d New Yo rk , w it h R evPA R [ reve n u e p e r avai l ab l e room ] st ill down 6 1 % a n d 5 6% , re s p e c t i ve l y, com pa red w it h 201 9, m ay b e n e f i t m ore i n 202 2 .” “ 2022 U. S . Real Estate M arke t Out l ook” — CB R E , p a ge 35

P h otos by J ay We n ni n g to n a n d C h e ls e a Ga te s o n U n s p la s h

48 l 202 2 T RE N D S R E P O RT

Year of the GOAT AFTER EXPERIENCING LOCKDOWNS, CANCELED TRIPS, T R AV E L R E S T R I C T I O N S , D E L AY E D C E L E B R AT I O N S , A N D M O R E , CO N S U M E R S A R E LO O K I N G F O R G OAT- S T Y L E VA C AT I O N S Acco rdin g to Ex p e d i a’s 202 2 Trave l Tre n d s Re p o r t , t h ey are d e cl ari n g t hi s year wil l b e f ul l of t rav el p u rs u it s in t h e G OAT cat eg ory — Great est of A l l T ri ps — tha t inv ite “ t ran s form a t i ve a n d m ea n i n g ful t rave l ex p e ri e n ce s.” https: //n ewsro o m.ex pe di a.com / 202 1-11-3 0 -T h e - GOAT- m in d s e t- Ex p e d ia - reve a ls -2022s b iggest- travel - tre n d

In a n Ex pedia - con d u c te d s u r vey of 1 2 ,000 t rave l e rs i n 12 co unt ri e s, re sult s sh owed t ha t 6 8% of re s p on d e n t s a re p lan n i n g to “ g o bi g ” on t h ei r n ex t t ri p, wi t h 4 0 % w illin g to s p l u rg e on f u t u re t rave l s. As a re sult , Ex p e d i a nam e d t h e desire fo r excit i n g a n d ex t rava g a n t t ri ps t h e b i g g e st t rave l t re n d o f 2022 . https: //n ewsro o m.ex pe di a.com / 202 1-11-3 0 -T h e - GOAT- m in d s e t- Ex p e d ia - reve a ls -2022s b iggest- travel - tre n d — para. 1 an d 6

2022 TRENDS REPORT l 49

50 l 202 2 T RE N D S R E P O RT

Back to Business as Usual N OW T H AT T H E H O S P I TA L I T Y I N D U S T RY I S R E T U R N I N G TO A PRE-PANDEMIC FLOW, THE FOCUS WILL BE ON R AT E S I N S T E A D O F O C C U PA N C Y “ For h ote l s t hat have b e e n l i mi t i n g o ccupan cy l eve l s an d a m e n i t i e s to st ay o p e n, w e ex pect to see l ow er operat i n g ma rgi n s b u t st ron g cash fl ow g rowt h , as a cce l e rat i n g to p l i n e t re n d s w i l l b e par t i al l y o ffse t by wa g e p re ssure s an d t h e re s u m p t i on o f n o rmal am e ni ty an d se r vi ce l eve l s. O ve ral l , h otel own e rs wi l l wo rk to d ri ve rate s i nstea d o f chasi n g o ccupan cy.” “ 202 2 U. S . R e a l Es ta te Ma rke t O u tlo o k ” — C BR E , p a g e 3 6

2022 TRENDS REPORT l 51

W W W.T H E LY S T. C O M

1 1 0 Wi l d B a s i n R oa d , Sui te 35 0, Aust i n, TX 78 746 P h o n e: (5 1 2 ) 579 - 5 460 E m ail: co nt a c t @ t h e l yst .co m