Hotel funds popular

Munich. There's more than enough money! Since last year, this sentence has been heard often, also among hotel developers. Above all institutional investors stand under pressure to invest: Their capital experts manage billion euro sums: Alone the German insurance industry needs to securely invest millions of euros every day and in so doing generate a return. In the current environment, this is anything but easy. After all, the low interest phase in Europe and the US will not change in the near future - nor will the short supply of core properties on the real estate market. In order to meet their real return expectations, insurance companies, pension funds and sovereign wealth funds are increasingly on the look out for new business fields and asset classes. Renewable energies, infrastructure, but also niche assets such as project developments, residential property and hotels are becoming increasingly interesting. Often though, this introduces risk into the game.

Munich/London. The real estate investment company of Invesco Real Estate is carefully entering the world of hospitality. In 2006, the company launched its initial fund revolving around hotels, the classic special real estate type. In November 2014, the company was seemingly overcome by boldness investing in the small Generator Hostels group. This gave the industry a jolt. Low-budget investments in the world of conservatives? Invesco, however, plans to open up even further, opportunistically investing in hotel niches and niche providers on a pan-European level, says Marc Socker, Senior Director Fund Management Hotel at IRE.