Hotel investors in high spirits: Serviced Apartments to become the next investment product

In the hotel real estate market, the investment mood is top. Investors, owners and project developers look forward to the next six months with great optimism. This is one result of the 1st “Investment BAROMETER”, initiated by the hotel trade magazine hospitalityInside in cooperation with Union Investment.

With 3,750 out of 5,000 possible index points, the survey participants showed clearly that they rate the current offers beneficial for their own businesses; however, they are expecting a further upturn in the offer pipeline.

More than half of the participants indicate that the current market situation is “good” for their own business (51.6 percent), 22.5 percent say “satisfactory”. This leads to a very stable middle – with a euphoric upward swing: for 16.1 percent, the situation is “very good”. Only among very few participants is the current situation “unsatisfactory” or even “very bad”: this is less than ten percent in total.
The strongest capital streams for the European hotel markets come from Continental Europe way ahead of the Middle East and the Far East, according to the first “Investment BAROMETER”. America as a source of capital lags far behind in this response.

“Institutional investors are progressively including hotels in their investments,” says Andreas Loecher, Head of Investment Management Hotel at Union Investment, evaluating the results in the context of the market. “Just as in the office real estate

markets, the competition has increased in the European hotel markets concerning core objects, but at a lower level. Players from Asia and especially from the Middle East are increasingly contributing to this.”

Furthermore, the survey reveals: the largest potential for developing into an investment product is being assigned to aparthotels and serviced apartments, followed by design hotels, theme hotels or resorts at greater intervals.

“We are very satisfied with the launching of our first Investment BAROMETER,” adds Maria Puetz-Willems, Editor in Chief of the international online magazine hospitalityInside.com. “Through the participation of top executives, the index bundles the current evaluations of well-informed industry experts. We are curious about how the index will develop and which forecasts can be deduced from it.”

The results of the full index are published at the website www.hospitalityInside.com.

Those who like to receive the detailed survey results in future should register for the Barometer at hospitalityInside.com and join the next survey. Participation is free of charge. All registered users will receive the full survey later via eMail. The next survey will start in March 2014.

Source : Company

Testata giornalistica non registrata ai sensi dell’Art.3 bis del D.L. 18 maggio 2012, n. 63 convertito in Legge 16.07.2012 n°103

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