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New White Paper Identifies Hotels as Underleveraged Investment Assets

Pro-invest Group released its latest white paper, “Finding the Silver Lining: A New Perspective on Hospitality as an Alternative Asset“, authored by Dr. Sabine Schaffer, Co-Founder & CEO, Europe.

Sharing the company’s perspective on why current dynamics indicate now is the right time to consider hotels as a viable alternative asset class, Schaffer outlines the underlying fundamentals, long-term tailwinds and current dynamics that make this so.

Unlike many real estate assets, the flexibility of the properties and operational aspects provide a unique ability to outperform the market. This has become even more pronounced in the wake of the pandemic, which has dramatically impacted the usage rates of offices and other real estate sectors.

“Hotels have a distinct advantage in that they can adjust rates dynamically, maximise revenue during peak periods, maintain occupancy during slower periods, and proactively manage staffing, maintenance, and utilities on a daily basis,” says Schaffer. “This gives them an edge over many other asset classes.”

Combined with continued share of wallet growth, generational shifts in the values and needs of travellers, and proven resilience of the asset class overall, all signs point to a renaissance for what has traditionally been seen as an alternative investment.

From opportunities to improve sustainability, to the wealth of daily data hotels generate, and the current lack of institutionalised ownership, institutional investors can identify significant areas for improvement and create efficiencies that present substantial value-add opportunities.

All signs point to a renaissance for what has traditionally been seen as an alternative investment. The industry continues to gain a larger share of travelers’ spending and embraces changing generational values. With its demonstrated resilience, institutional investors have the chance to capitalise on various opportunities, including the wealth of daily data generated by hotels and the absence of institutionalized ownership. These factors create substantial value-add prospects in the industry, making it an exciting and promising time for investment.

“Our goal is to shine a light on the potential of hotel investments as an efficient asset class that has proven its resilience time and time again. We believe this paper will be a valuable resource for investors looking to broaden their portfolio or those considering hotels for the first time.” says Ronald Barrott, Founder and Chairman, Pro-invest Group.

The white paper, “Shining a Light on Hotel Investments: An In-depth Look into an Efficient Asset Class,” is available for download HERE

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