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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