News & Stories
Munich. Open and closed-end real estate funds have to cope with declining demand, high regulatory requirements and the issue of ESG, all in addition to the effects of multiple crises. Their exposure to asset classes has changed, with residential displacing shopping centres, but there are also renewed calls to invest in hotels. A look at the funds industry, another industry in transition.
London. Hotel values across Europe rose around 3% in 2022 with Paris, London, Zurich, Amsterdam and Rome remaining those with the highest valued hotels.
Milan. Growing inflation and rising ECB interest rates have led to a widespread wait-and-see attitude towards hospitality real estate deals in Italy in the second half of the year 2022.
London. Despite the geopolitical and macroeconomic headwinds in the back half of 2022, Europe welcomed almost 70% of the world’s travellers. The region was the front runner in the re-emergence of international travel and opportunities for cross border hotel investment.
Beijing. The Chinese government has started to encourage again investment overseas, including hotel groups and other tourism infrastructure. This is a fundamental turnaround again.
Rosenheim. In times of low interest rates, investors look for alternative ways to invest money, and SMEs search for a favourable financing mix. Crowdinvesting has been pushing into this gap. Some hotel groups are also now taking interest. Falkensteiner just raised millions again and has even founded its own investment platform. Crowd investing remains popular but has its pitfalls as it operates in the grey capital market. The renowned German financial journalist Stefan Loipfinger analyses the crowd with its ups and downs.
Frankfurt. The German hotel investment market reached a transaction volume of 1.9 billion euros in 2022, which corresponds to a further decline of 26% even compared to 2021. The fact that the industry is nevertheless more optimistic about the future despite the many current challenges is related to the fact that many deals had only taken place in the last quarter.
Milan. The recovery recorded by the hospitality industry since last summer, thanks to the return of international demand, is fuelling hotel investments in Italy again. Overall, transaction values are not yet at the 2019 record levels, but volumes are consolidating.
Hamburg/Munich. The first two capital commitments were received yesterday: This marks the start of a new closed hotel real estate fund called H2i Asset Management, which aims to finance medium-sized private hotels in Germany. Unusually, H2i only works with one hotel operator: Gorgeous Smiling Hotels.
Neuss. The energy crisis has led to an increase in corporate insolvencies in Germany. Added to this are the interest rate turnaround and the expiry of state support from the Corona pandemic. One of the most threatened sectors is the service sector, especially the catering industry.
