20220427_CW_InvestorBeat_2022H1 (1)
HOTEL INVESTOR BEAT
Sentiment of institutional hotel investors – Europe
H 1 2022
“ The majority of investors intend to deploy the same or more capital in hotel real estate „
“ Most investors seek only modest discounts „
AS A RESULT OF COVID -19
Q : How has your hotel acquisition strategy changed compared to pre - pandemic times ( 201 9)?
Q : What is the minimum pricing discount relative to 201 9 levels that you require to consider a new acquisition opportunity ?
% of respondents
% of respondents
7 2 % of investors consider Serviced apartments more attractive for investment
69% of investors consider Resorts more attractive for investment
40 %
3 7%
of investors consider Luxury hotels more attractive for investment
of investors consider Economy hotels more attractive for investment
The survey was completed by 56 respondents , including senior representatives of major private equity firms , funds ,
Contact Us for further detai ls at Hospital ityEMEA @ cushwake . com
REITs and other institutional investors active in the European hotel real estate market
HOTEL INVESTOR BEAT
RECOVERY OUTLOOK
H 1 2022
96% of investors expect leisure markets to recover by 2023 9 3 % of investors expect regional cities to recover by 2024 88% of investors expect major cities to recover by 2024
Top - 15 mos t at t rac t i ve c i t i e s f or ho t e l i nve s tment
3.7
+13%
EDINBURGH
3.4
+3%
3.3
n / a
DUBLIN
4.0
3.8
HAMBURG
+5%
4.0
+1%
* Major cities : > 1M population
+2%
AMSTERDAM
BERLIN
LONDON
Investor interest on a scale from 1 to 5
4.1
+5%
“ UK & Ireland , France , and Germany are the most attractive markets for hotel investment „
3.6
PARIS
3.3
-5%
5
1
+3%
MUNICH
VIENNA
Very high interest
No interest
Q : Top - 5 most attractive countries / regions for hotel investment
3.8
n / a
Increase
Decrease
MILAN
3.5
n / a
FLORENCE
3.9
3.7
-2%
4.0
+4%
+5%
BARCELONA
ROME
3.6
MADRID
+5%
LISBON
* On a scale from 1 to 5
* The bullets represent the approximative locations of the markets
The survey was completed by 56 respondents , including senior representatives of major private equity firms , funds ,
Contact Us for further detai ls at Hospital ityEMEA @ cushwake . com
REITs and other institutional investors active in the European hotel real estate market
HOTEL INVESTOR BEAT
Key underwriting considerations for hotel investors - Europe
H 1 2022
“ Growing expenses are among the top concerns for investors „
“ Investors apply moderate LTV levels in underwriting new deals „
UKRAINIAN WAR IMPACT
Q : What is your required discount to reflect the uncertainty associated with the war in Ukraine ?
Q : Which are the greatest challenges you are currently facing in underwriting new deals ?
Q : What is the typical LTV ratio that you are currently using to underwrite new deals ?
% of respondents
% of responses ( excluding those not interested )
Average response ( rate 1 - 5 , 1 = least challenging , 5 = most challenging )
ESG PREMIUM
3 -9% is the premium expected by investors for hotel properties with the highest ESG certifications ( on average )
More details in the extended analysis
The survey was completed by 56 respondents , including senior representatives of major private equity firms , funds ,
Contact Us for further detai ls at Hospital ityEMEA @ cushwake . com
REITs and other institutional investors active in the European hotel real estate market
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