Briefing: The real estate perspective

A survey by Berwin Leighton Paisner earlier this year found that, 70% of hotel professionals believe hotels will continue to outperform “traditional” commercial property investments.

A separate survey by PwC ranked hotels number 6 for investment prospects in a list of 20 real estate sectors. 62% of respondents to the survey said hotels had either good or very good prospects. Serviced Apartments came at number 9 with 59% of respondents saying the prospects were good.

This briefing features professionals from the hospitality industry whose focus is on investment and ownership:

The Emerging Trends in Real Estate Report from PwC showed that London was the most active European real estate market in 2014. A global ranking showed New York was the top city for commercial property investment in 2014 with a sales volume of $57,012, and London was second with $42,889.

The report also highlighted issues and concerns in the real estate industry. 47% of property professionals said a ‘shortage of suitable assets to acquire’ was a significant issue impacting real estate business. 78% of European respondents and 80% of US respondents said ‘demographics and social change’ would have an impact on business decisions in the coming years.

In the US, real estate business prospects for multifamily developers were rated as good (3.9 out of 5). Business prospects for real estate brokers where rated at 3.91 out of 5, and private local real estate owners had prospects of 3.86 out of 5. Prospects across all business sectors listed showed an improvement on the previous year.

Within the hospitality industry, BLP’s European Hotel Market Survey 2015, found that; 80% of hotel professionals say hotels are becoming more of a valued asset class for investors, but are still perceived by many as risky. In the survey, 89% of respondents foresaw increased competition from the residential market with short term lets.

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Video clips produced by yBC for the Hospitality Channel, including interview from industry conferences such as the IHIF conference as well as specific Hospitality Channel shoots.

Briefing: global market conditions for deal-activity

Confidence in the hospitality deal-making market seems to be picking up. The volume of deals has lagged in the past few years, but has hospitality finally turned a corner? Many believe the industry is now slowly picking up again. The relief for all is paramount.

What markets will see the quickest growth in activity? Have we seen the worst of a flat market? What are the market conditions required for deal-activity? These questions are all answered in this week’s briefing, including comment from:

  • Frank Croston, Partner at Hamilton Hotel Partners, on what markets he sees picking up first.
  • Peter Malone, Managing Director of Madison Mayfair, on deal-activity finally being seen in the marketplace.
  • Clive Hillier, CEO of Vision Hospitality Asset Management, on the market that is no longer falling.
  • And James Chappell, Global Marketing Director at Horwath HTL, on the continued need for confidence in the hospitality market.
 


If you’ve been sent to this page but you’re not yet on the circulation list to receive these regular briefings and you would like to sign up, you can do so here. It’s free.

Video clips produced by ybc.hpgcms.wpengine.com for the Hospitality Channel, including interviews from industry conferences such as the most recent IHIF conference as well as specific Hospitality Channel shoots.

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