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Laxman Pai, Opalesque Asia: The hospitality real estate sector has grown in prominence over the past decade, and has diversified to become a truly global industry, says a study.
According to a new joint report from data provider Preqin and investment firm and asset manager Pro-invest Group, performance has been strong in recent years: hospitality has been among the highest performing real estate sectors in recent vintage years, and returns have met or outpaced the MSCI US REIT index over one-, three-, and five-year horizons.
Fundraising for the sector has doubled in the past decade, reaching a high of $31bn in 2017. A record number of hospitality-focused funds (62) closed in 2018, it said.
Fund managers have put this capital to work, deploying more than $110bn since the start of 2015 into hospitality assets. They are increasingly targeting larger deal opportunities, and the sector is diversifying beyond established markets into Asia and Australasia.
"The hospitality sector has seen a flurry of activity in the past couple of years, hitting levels not seen since the Global Financial Crisis. Returns in the sector have outpaced both office and residential assets in every vintage year since 2010, and investors are taking note," said Justin Hall, Real Estate Product Manager - Preqin.
"While the industry remains heavily centered on North America, there seem to be significant opportunities for growth in less saturated markets like APAC. The succ...................... To view our full article Click here
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