For many years, climate change was primarily seen as an environmental issue. Today, it has become a strategic business challenge for the hospitality sector, affecting destinations across the globe, disrupting operations, damaging infrastructure and influencing travel patterns.

 As climate-related crises are expected to intensify with rising temperatures and global warming, there is a growing need to adapt protocols, infrastructures and strategy to disruptive natural events such as flooding. According to the Global Assessment Report (GAR) 2025 by the UNDRR, recorded flood disasters have risen by 134% since 2000. As per the macroeconomic impact of climate disasters, direct losses are estimated at $200 billion annually and over $2.3 trillion with cascading and ecosystem costs considered. Given the concentration of tourism activities in coastal and flood-prone destinations, the hospitality sector is particularly exposed to these risks.

Flood preparedness in an era of climate uncertainty: safeguarding people and operations

Climate related disasters pose a direct threat to human safety. Hotels and other tourism businesses have a duty of care towards guests, employees, contractors and visitors who may be unfamiliar with local hazards and emergency procedures. As extreme weather events become more frequent, protecting people must remain the main objective of any climate strategy.

Sustainability efforts within the hospitality sector have traditionally focused on mitigating  environmental impacts through measures such as efficient use of energy and water resources as well as waste reduction and management. But while these actions remain essential, hospitality businesses must increasingly complement mitigation efforts with adaptation measures, including:

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 Since our first climate-related risk and opportunity analysis conducted in 2025, we’ve gained valuable insight to establish a roadmap towards adaptation strategies across our operations and partnerships.

 Since then, we have strengthened the resources available to employees to help them prepare for and respond to climate-related emergencies. One example is the development of our Flood Prevention and Recovery Plan, which provides practical guidance before, during and after flood events.

To further support our partners, we have also adapted this guidance to hotel operations. The Hotel Flood Prevention and Recovery Guide can be accessed here.

On the other hand, in line with our commitment to establish meaningful relationships with local partners, we have also developed a humanitarian support protocol. This protocol is activated following major climate-related disasters and aims to coordinate support efforts, mobilize resources and provide assistance to affected communities through the following actions: 

• Establishing contact with the local team in the affected area to assess immediate needs. 

• Coordinating with local NGOs and humanitarian organizations to identify priority needs and available support channels. -          Contacting the Red Cross to find out if they are planning to set up a donation line to support the cause and send it all employees worldwide. HBX Group will match employee donations whenever a corporate donation campaign is activated.

• Depending on the magnitude, contacting the ESG contacts in each office in the countries that accept aid from the affected area, to see if they can activate a specific campaign to collect the material needed

• Assess whether additional engagement of business partners and value chain stakeholders is required to support the response effort.  

As climate risks continue to evolve, building resilience is no longer optional. By strengthening preparedness, supporting vulnerable communities and integrating climate adaptation into decision-making processes, HBX Group aims to contribute to safer destinations, more resilient operations and the protection of both people and livelihoods.