Overwhelming sense of optimism from hospitality investors with 96% expecting improving economic conditions, with hotels leading the recovery
Hospitality Insights Releases Investor Sentiment Assessment Q2 2021
LONDON, UK – Hospitality Insights, the industry’s trusted investment and development news platform from Questex, has released the Q2 2021 results of the quarterly Investor Sentiment Assessment in collaboration with ABP Invest. Hospitality Insights provides deal-makers with the latest information on trends and opportunities and is the official news arm of top global hospitality conferences, including; The Annual Hotel Conference, The International Hospitality Investment Forum and The Resort & Residential Hospitality Forum.
There has been a continuing improvement in expectations of economic conditions for the ensuing 12 months, with investors expecting a ‘significant improvement’ having increased by 50% from 40% of investors in Q1’21 to 60% of investors in Q2’21. The proportion of investors expecting a deteriorating economic climate has reached new record lows at 2%, even lower than last Quarter’s 6%. Finally, only a small 2% of investors expect economic conditions to remain stable.
Hotels remain at the top of the list for a third consecutive Quarter as the best investment opportunity over the next 12 months, followed by Serviced Apartments and Resorts. At the other end of the scale Hostels, Senior Living and Co-Working are expected to provide the least attractive opportunities.
When asked to consider the most attractive cities for hotel investment the response was clear; the European cities London, Barcelona and Paris came out on top, with Barcelona ousting Rome from the top three this Quarter.
This bullish outlook on the hotel investment market is no doubt buoyed by continued monetary and fiscal support, coupled with the progress of vaccination programmes. Investors hold a positive view of the current state of the hotel investment cycle, with 54% believing we are in the ‘recovery/upturn’ phase. Despite the frothiness in the market, ABP Invest are keen to point out some potential problems on the horizon.
“In our view the optimism on the economic environment so far was warranted. We had been positive since last spring expecting policy makers, politicians and central bankers to do ‘whatever it takes’ to ensure the economic crisis does not manifest itself into a socio-political crisis with far more significant consequences and costs,” Thanos Papasavvas, founder and chief investment officer, ABP Invest, said.
"However, we are cognisant of the near extreme level of positive economic sentiment amongst investors with 96% expecting improving economic conditions for the ensuing 12 months. There are potential risks on the horizon such as rising yields and tighter monetary policy on the back of higher-than-expected inflationary pressures."
As the global crisis rumbles on, there has been a marginal change in the rate of investors expectations regarding themselves as Net Buyers (88%) and Net Sellers (12%), when compared to last quarter's 89% and 11% respectively.
Over the course of the past 16 months, the assessment was only open to a select group of investors that actively attend the Questex portfolio of hospitality events and provide a healthy representation of the entire hospitality investment ecosystem; including institutional investors, private property owners, family offices, private equity and high net worth individuals. As the investor pool grows, Questex will be opening submissions to vetted investors who wish to participate and in turn, have the opportunity to debrief with fellow contributors on the findings. Those interested can complete this brief form.
About the Hospitality Insights Investor Sentiment Assessment
The assessment was launched at the start of the pandemic to monitor buyer and seller sentiment, during a time where tracking investors’ appetites became more crucial than ever. The data captures overall proportions of dry powder in hospitality, interest and allocation in various investment segments, regions, and asset classes, yield expectations, potential threats, and environmental, social, and governance (ESG) strategies.
About Questex LLC
Questex LLC is a leading global business events and information company serving corporate and government clients and industries that are driving economic growth and business innovation around the world.
The company drives business investment, innovation and demand-creation in the markets it serves by bringing together investors, buyers, sellers and professionals through its over 120 trade shows, conferences and other business events and informing them through related business media and information products. Questex"s industry-focused business units include Life Sciences & Healthcare, Hospitality & Travel, Beauty & Wellness, Technology & Telecom groups.
Questex is headquartered in Newton, Massachusetts. The company employs over 350 professional staff members operating in the United States and the Americas, Europe, the Middle East and Asia-Pacific regions. For more information, visit questex.com.
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