Property is a significant asset class attracting a wide range of investors and property types.
In the focused hotel and hospitality sector in which Arc Consulting Partners specialises it forms the bedrock within which the trading business takes place turning it into a very specialised but increasingly sought after asset.
Investment in Europe’s real estate markets remains strong ....total volumes in the markets monitored are set to surpass €230 billion, exceeding 2016 by between 5% and 10% (Savills).
With good travel and tourism prospects and global GDP growth -despite some political uncertainty- Europe's sought after hotel markets will continue to attract investor demand. Key cities include Munich, Berlin and Budapest whilst Dublin, London, Barcelona, Milan, Madrid,Prague, Rome, Vienna, Athens,Moscow and Zurich will also see steady growth (JLL) although we have also seen increasing interest in Portugal as an emerging and attractive location in which to own hotels.
As an asset class hotels are increasingly recognised as an option through which to diversify portfolios. There is a much better understanding of the dynamics of the business and the attractive yields on offer against other property asset classes in certain situations.
Investors include private equity, family firms, high net worth individuals and increasingly institutional investors.
At Arc Consulting Partners we have experience and a deep understanding of the drivers of the business aspects but also the underlying real estate/property issues that combined, create trading income and capital value.