News & Stories

Munich. Private equity and institutional investors are buying properties as investments and as of recently are increasingly looking to the hotel sector again. Yet, as an Expo Real discussion round with representatives from both sides revealed, despite the same targets, their approaches and expectations vary significantly. Investor knowledge of the hotel industry and the finer points of these markets is increasing which is why return expectations are drifting apart in areas. The search for quality properties remains difficult as the number of distressed assets coming on to the market is low.

London. The Maldives are the most popular destination for luxury travel, Chanel is the most popular fashion brand and first-class travel even surpasses cars, jewellery and fashion when it comes to the most popular luxury product. These are the findings of a recent survey by an international consortium.

Vienna. Finance for hotel real estate has changed considerably over recent years. Whereas the majority of projects were previously financed by banks, today only one in ten projects are successful in arranging classic bank finance. The banks must find a new role.

McLean. Hilton's long anticipated IPO was finally officially made public last Wednesday, 12 September when the chain's owner Blackstone, the large private equity fund manager, filed an S-1 document with the US SEC. It should be understood that only US$1.25 billion worth of shares representing a scant 5% of Hilton's estimated total value will be sold in this initial offering.

Hanover. Deutsche Hypo has provided hotel finance since the beginning of the 1980s. And it's to stay that way, Board Member Andreas Pohl tells hospitalityInside.com. However, since the Lehman collapse, the Hanover-based Pfandbrief bank has imposed more rigid conditions on customers. And the Managing Director makes no secret of this. His criticism of the hotel industry is that there are still many half-baked finance concepts. On the other hand, the bank appears to have a lot of patience when it notices that it has chosen the wrong operator. A conversation on principles and hotel finance.

London. In future, capital will increasingly come from Asia and Arabia, as markets there will continue to grow reliably and increase the desire of investors to commit funds to Europe. However, there is no need to fear hotel investors from these parts of the world, equity expert Ramsey Mankarious says. Hotel real estate insiders got to know the friendly and modest American who is considered a distinguished investment expert with top contacts. His company, Cedar Capital Partners, specialises in the European hotel industry. Ramsey Mankarious on his own business model and the big trends on the hotel investment market.

Berlin. Hotels in Germany could in future face high costs - both in terms of finance and in terms of construction. The reason is to be found in two changes: Firstly, the draft Accommodation Establishments Ordinance, which places comprehensve obligations on hotels with regard to barrier-free access and secondly, the regulation of open-ended, closed-ended and special funds by the AIFM Directive, which finally entered into force on July 22, 2013, after long discussions.

Bad Doberan. The new owners of the Grand Hotel Heiligendamm in northern Germany should have presented themselves to their employees on July 1, but things turned out differently. Part of the agreed purchase sum wasn't transferred. Meanwhile, the Director of Public Prosecutions is looking into the possibility of gang fraud against the presented buyers. The rumour here is of falsified finance documents. At the same time, there is also rumours of already completed entry in the land register. The general shock will now again be followed by difficult, long and complicated legal procedures in order to unpick the legal steps in the sales process. Only then can a new buyer again be sought and concrete negotiations begin. Meanwhile, Anno August Jagdfeld is selling the villas from the "pearl chain".

Zurich. Despite the rather difficult market environment, the Swiss hotel market continues to grow – especially luxury hotels are in great demand. With good reason, as hotel investors and operators say. A survey of the 5-star hotel industry in Switzerland reveals how attractive the Swiss hotel industry is for foreign investors. According to the survey, 40 percent were already owned by foreign investors in 2012. However, the motives are various. Only one thing is clear: the former family business has changed into an international real estate business, where the time of the transaction has become decisive.

Munich. Whilst South Africa is in the process of introducing REIT structures and sees them as an enrichment for investors, particularly in the hotel sector, Germany is having problems with the issue. Introduction of the REITs has been cautious. Then, they were to be included under the new AIFM Directive. Guidance provided by the German Federal Financial Regulator has, however, not included them.