Tag: Berlin

Spring 2025 Hotel Investment Update: Key Themes Ahead of IHIF 2025

Posted on by Dan Akhtar

The International Hospitality Investment Forum (IHIF) 2025 takes place in Berlin from 31st March to 2nd April. This year’s event promises another deep dive into the current investment landscape and both Guy Lean and Dan Akhtar are returning there once again to represent HPG, and they especially look forward to reconnecting with people and making new contacts at one of our favourite conferences.   

This year’s key themes will focus on the ongoing economic shifts and their influence on hotel investment decisions, innovative financing solutions, the future of luxury and lifestyle brands, and how public-private partnerships impact the future of hospitality. 

In this article, we have gathered insights from across the global hotel investment industry to provide an overview of the trends we think may dominate discussions at IHIF 2025 including; ongoing economic shifts and their influence on hotel investment decisions, innovative financing solutions, the future of luxury and lifestyle brands, and how public-private partnerships are impacting the future of hospitality. We hope that this will give you an insight into the current investment market, whether you are attending the conference or not.  

To help you further prepare for IHIF, we also highly recommend the latest edition of the Hilltop Tracker which is released this week. The tracker is a detailed quarterly report focusing on real estate transactions in the hospitality sector that has been created by Tom Oakden of Hilltop Hospitality Advisors, in partnership with HPG. The link to request your copy is at the end of this article. 

The Rise of Hotel Conversions 

One of the most prominent themes at IHIF 2025 will be the ongoing rise of hotel conversions, a topic that aligns with the “Adaptive Reuse and Conversion” session on 1st April. As highlighted recently in Hotel Investment Today, the surge in conversions stems from rising construction costs, supply chain disruptions, and the expiration of brand-mandated Property Improvement Plans (PIPs) that were delayed during the pandemic. Michael Cummings of CBRE Hotels Advisory notes that many owners now face a choice between costly renovations and strategic brand changes. 

Ben Rowe of KHP Capital Partners, whose portfolio includes significant conversion projects, points out that conversions have become a cost-efficient way to reposition assets and enhance ROI. Mehul Patel of NewcrestImage echoes this sentiment, emphasising that adaptive reuse is particularly attractive in the current economic climate. Sessions at IHIF 2025 will explore how these strategies are being implemented across Europe and the U.S. 

Financing the Future 

Securing funding remains a critical challenge in 2025. With traditional bank financing proving inconsistent, investors are increasingly looking towards multi-layered financial structures, including private equity and joint ventures. Notably, the IHIF session on “New Directions: Where is the Lending Market Headed Next?” on 1st April, will address the evolving landscape of financing options. 

Rockbridge’s Matt Welch points out that while there is cautious optimism about lender activity, the bid-ask gap between buyers and sellers continues to create friction. Meanwhile, private equity players like NewcrestImage are leveraging creative funding solutions, including SBA loans and tax credits, to support conversions and renovations. These themes are expected to be a focal point during finance and investment sessions at IHIF 2025. 

Luxury and Lifestyle 

Luxury investments are set to take centre stage at IHIF 2025, with the session “The Luxury Equation: Aligning Concepts with Evolving Guest Expectations” scheduled for 1st April. As Hospitality Investor highlights, investors are increasingly drawn to high-barrier markets like Portugal and Greece, where luxury and lifestyle properties are thriving. 

VIC Properties’ €1.7 billion luxury development in Comporta, Portugal, exemplifies this trend, offering bespoke villas and branded residences within a natural reserve. Similarly, Invel’s Mediterranean Hospitality Venture (MHV) is focusing on high-net-worth travellers with premium resort developments in Greece. The focus on guest-centric luxury experiences and the blending of high-end hospitality with local culture will be key discussion points at the event. 

M&A and Market Volatility 

Despite a challenging economic environment, mergers and acquisitions continue to offer opportunities for savvy investors. At the Hunter Hotel Conference, which took place in Atlanta, Georgia last week, industry leaders discussed how market volatility, while daunting, also creates potential for strategic acquisitions. IHIF’s session on “Sealing the Deal: Lessons Learned from Recent Transactions” will cover how investors are capitalising on distressed asset sales. 

Greg Friedman of Peachtree Group highlighted that higher interest rates and debt maturities are pushing some owners to divest assets, while local buyers with access to financing are well-positioned to take advantage of undervalued properties. As the market normalises, stakeholders are optimistic that liquidity will improve, particularly in the extended-stay and select-service segments. 

Public-Private Partnerships 

As cities look to revitalise urban areas post-pandemic, public-private collaborations have become essential. Hospitality Investor notes how cities like Rome and Paris are leveraging major events and government support to enhance hospitality infrastructure. The session “Collaborative Development: Public-Private Synergy for Hospitality Growth” on 1st April at IHIF, will explore how stakeholders are working together to balance growth and sustainability. 

Turkey stands out as another collaborative success story, with booming tourism driving investment in Istanbul, Antalya, and other key locations. Major brands such as IHG and Marriott are expanding their presence, driven by strong RevPAR growth and supportive economic policies. 

Resilient Segments 

According to Nobel Investment Group, select-service and extended-stay properties remain robust investment opportunities, driven by steady demand and lower operating costs. Based in the U.S., Noble has made significant strides in this segment, recognising the appeal of efficient, long-term accommodation amid economic uncertainty. The session “The Future of Extended-Stay and Select-Service Investments” at IHIF will delve into how these properties continue to perform well despite market turbulence. 

What to expect at IHIF 2025 

With a comprehensive agenda, a diverse range of speakers and an incredible opportunity to network with some influential industry people, IHIF 2025 looks set to once again serve as a vital platform for stakeholders to exchange ideas and forge new partnerships. From navigating the continuing economic volatility to leveraging the latest hospitality trends, the forum will provide actionable insights for investors, developers, and operators. 

If you are attending IHIF 2025 and would like to discuss any of the above trends and their potential impact on your people strategy, Guy Lean ([email protected]) and Dan Akhtar ([email protected]) would love to connect and set up a chat in Berlin.  

If you are interested in receiving a copy of The Hilltop Tracker straight to your inbox every quarter, please let us know by email here. 

Insights from International Hospitality Investment Forum (IHIF) 2024

Posted on by Dan Akhtar

The International Hospitality Investment Forum (IHIF) 2024 took place in Berlin in mid April 2024. Like many recent articles, insights and data we have seen recently, the increasingly positive results in terms of sector growth continue to be treated with caution as investors seek to secure long-term value. 

Here we look at the current UK investment landscape and highlight some of the key themes from IHIF such as expansion strategies, the future of hotel operations and what they mean to the global investment infrastructure. 

UK Investment and Market Dynamics
The UK hotel market has seen a robust recovery, with investments soaring to £1.7 billion in the first quarter of 2024—marking the highest level since 2019 and a 138% increase from the first quarter of 2023. 

In this article from Hotels, David Eisen cites recent data from Cushman and Wakefield to say “London accounted for 60% of major deals by volume and included the sale of Atlas House to Integrity International Group and the BT Tower to U.S.-based hotel owner and operator MCR Hotels” These deals highlight a growing trend of converting non-hotel assets into hotels, a strategy expected to continue shaping the market. 

The transaction volume in this quarter spanned 93 properties across the UK, encompassing around 7,600 rooms. Major portfolio deals like the Edwardian UK Radisson Hotel Portfolio and the LXi REIT Travelodge Portfolio made up 60% of the transaction volume. Private buyers dominated the market, responsible for 69% of the transactions, followed by public investors and institutional-backed capital. 

Ed Fitch, head of hospitality UK & Ireland at Cushman & Wakefield, commented on the sustained high performance of the UK hotel sector, which is stabilising as the new norm. Despite a strong capital interest, the market faces constraints due to a limited number of available properties and cautious buyer sentiment ahead of expected base rate cuts and the upcoming UK election. 

Strategic Expansion
Speaking at IHIF in Berlin, Sir Rocco Forte outlined his group’s strategy to leverage its strong U.S. customer base, where 40% of its business originates, and explore high-demand locations like New York, Los Angeles, Beverly Hills, and Miami, despite high entry costs. The investment from PIF, which acquired a 49% stake in the hotel group, is poised to double the size of Rocco Forte’s portfolio within five years, including launching The Carlton Hotel in Milan and a new venture with fashion company Capri Group in Naples by 2027. 

Sir Rocco highlighted the group’s commitment to maintaining high service standards in the face of rising costs and continuing to manage food and beverage operations in-house to ensure quality. He also emphasised the importance of enhancing employee remuneration and working conditions, reflecting on COVID-19 as a catalyst for improving employee welfare and aligning hotel operations closely with local cultures. 

Regional Opportunities
On Day 2 of IHIF, hotel executives highlighted increasing investments and travel interest in Mediterranean destinations, contrasting with the economic challenges in northern Europe such as Germany.  

Hotel News Now reported that that Tim Abram of Starwood Capital acknowledges the difficulties in Germany due to a sluggish economy and high interest rates but reiterated the country’s strong investment potential. 

On the other side of the coin, Italy is being seen as an emerging hotspot for hotel investments, similar to Spain a decade ago. Marcello Cicalò of Bluserena Hotels & Resorts noted Italy’s fragmented market and rising asset values are attracting significant private equity interest. Andreea Bodea of Pygmalion Capital noted that while Italy can boast the highest room count in Italy, many owners are still struggling to attract the investment their properties need in order to meet and exceed the expectations of the modern traveller. 

Operational Insights and Future Prospects
The forum highlighted the critical need for operational efficiency and adapting to evolving consumer expectations. The changing landscape of hotel food and beverage services was a focal point, emphasising innovation and operational optimisation to boost profitability. Sébastien Bazin of Accor shared insights from the company’s decade-long transformation, emphasising the importance of digital integration and stable leadership amidst a volatile geopolitical landscape. “Navigating new challenges requires a robust blend of innovation and tradition,” Bazin remarked during his session. 

Customer Loyalty and Guest Experience
Hospitality Investor reported on a fascinating panel discussion that once again highlighted the evolving concept of loyalty in the hospitality sector. The discussion, featuring insights from Antonio Gonzalez, CEO of Sunset Hospitality Group, and Gregory Lanter, a senior executive at Club Med, emphasised the shift from traditional transactional loyalty to a more emotionally driven model.  

Gonzalez elaborated on the importance of experiential hospitality that withstands changes in pricing strategies or market trends. By launching Sunset Hotels & Resorts, his group aims to expand its portfolio significantly by 2026 while focusing on crafting unique experiences that resonate on a personal level with guests. 

Lanter shared similar sentiments, pointing out that the real value lies in providing life-enriching human experiences beyond the standard offerings of rooms and amenities. He stressed that the key to achieving this is through employees who possess strong interpersonal skills rather than just technical capabilities, enabling them to engage with guests meaningfully. 

Both leaders highlighted the role of technology in enhancing guest experiences. Gonzalez discussed how technology could leverage data to better predict customer preferences and streamline experiences, making them more seamless and personalised.  

Meanwhile, Lanter viewed AI as a disruptive tool that can revolutionise how guest services are delivered, particularly in tailoring the marketing and distribution of these personalised experiences. 

Market Optimism Amidst Challenges
Despite macroeconomic uncertainties, the forum radiated a general optimism about the hospitality market’s future. The European M&A outlook appears promising, reflecting improvements in deal structures and an increase in strategic investments. However, the forum also acknowledged challenges such as rising costs, interest rates, the current geo-political instability and the necessity for flexible business models to adapt to rapidly changing market conditions. 

In conclusion, IHIF 2024 offered invaluable perspectives on the continued resilience and adaptability of the hospitality industry, highlighting the sector’s commitment to growth and innovation. The discussions reflect the industry’s concerted efforts to navigate a complex global landscape while pursuing expansion and refinement. 

Briefing: lifting the lid on the industry’s biggest event

Posted on by pmalone

As you know, we have been sending you regular briefings featuring key people from right across the hospitality industry. These briefings are produced in conjunction with our good friends, yourBusinessChannel who launched The Hospitality Channel 3 years ago. A channel which we have been a key partner for since the outset. We have had some great feedback to these interviews.

One of the great opportunities for the yourBusinessChannel team to capture a lot of this content is the annual International Hotel Investment Forum (IHIF) held in Berlin each year. This week’s briefing is a video that they put together from comments people made about last year’s conference as they thought it would be interesting for those who have never been IHIF conference to understand why people attend.

These comments are not scripted and yourBusinessChannel’s interviewees were not expecting to be asked this question so it’s a great insight into why people attend the conference and why there is so much buzz and business done over the 3 day event.


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