Environmental, Social and Governance (ESG) Factors as Key Factors in Real Estate Investment Decision: Property Categorized as Hospitality

The study reveals that environmental, social, and governance (ESG) factors play a crucial role in real estate investment decisions, particularly in hospitality properties. The study which adopted mixed approach in its design features both descriptive and inferential statistics as well as identified the key factors. Mean ranking was done for the identified factors whereas factor analysis was also done to determine which of the factors were fit. Employee wellbeing, biodiversity, sustainable design, indoor air quality, energy efficiency, community engagement, water conservation, and certification quest are identified as key factors influencing ESG in hospitality properties. Test done such as Kasier-Meyer-Olkin's measure of sampling adequacy and Barlett's Test of sphericity KMO measure indicate good sample quality. The study concludes that the integration of ESG factors in real estate investment decisions is essential for creating positive impacts on the environment and society as well as achieving financial success. In order to drive positive change and create value for all stakeholders involved, it is crucial for investors to prioritize sustainability and responsible business practices.