#REID2024 For the first time, a panel on #hotel investment was included in the Real Estate Investment Day conference programme organised by Targa Communications. Ascan Kókai, Principal - Head of Hotels at ECE Real Estate Partners; Asli Kutlucan, CEO of TFE Hotels; and Miguel Martins, Head of Development Northern Europe at IHG Hotels & Resorts, discussed why the current market opportunities in this growing European sector justify increased capital allocations to hotel investments. The panel discussion “Why you should include hotel investments in your real estate portfolio” presented the hotel sector to a wider audience and demonstrated the appeal of hotel investments.
Location remains the key factor when deciding to invest in the hotel asset class. The matching of the right concept, positioning, brand and operator to the asset in question requires sector expertise.
As Ascan Kokái mentioned, the hotel asset class is a sector that reacts quickly to the market and recovers swiftly after a crisis. The attractiveness for #investors lies in its high margins and strong potential for yield.
Asli Kutlucan spoke about the opportunities serviced apartments present as an alternative accommodation option. Whether you are travelling on business for an extended project or holidaying with your family, serviced apartments have proven very successful. They offer cost savings for longer stays, more space than standard hotel rooms, and the flexibility to cook and live as if at home. Asli also mentioned that the growing trend of remote working and digital nomadism has further boosted the popularity of serviced apartments.
Miguel Martins shared his views on brand building and its importance, particularly in the hospitality sector. He emphasised that a strong brand promises quality and consistency, resonating with customers. In his opinion, a brand adds value at every stage of the decision-making process, from planning the hotel and determining its costs to setting customer pricing. Martins believes a well-established brand can differentiate a hotel in a competitive market, attract loyal customers, and justify premium pricing. According to the panellists, investing in brand building is crucial for long-term success and profitability in the hospitality industry.
Marc Werner, Partner at Hogan Lovells and panel moderator, concluded, "Hotels are simply the hottest asset class in the real estate industry."
Thanks to our panelists for their brilliant contributions to the conference!
#reid2025 #realestateinvestmentday #targacommunications #Germany #Europe #hospitality #thoughtleadership
Guest Experience Manager at The Capital Zimbali Resort
2moNicely done José, it’s inspiring to see your insights featured in Africa Outlook Magazine.