DISRUPTORS DISMISSED AND OPTIMISTIC INVESTOR SENTIMENT SHOWN IN CBRE HOTELS MOOD OF IHIF SURVEY
During the recent gathering of the global hotel community at the International Hotel Investment Forum (IHIF) in Berlin, Founder Patrons of the event, CBRE Hotels conducted a survey to measure investor sentiment – The Mood of IHIF.
Findings included the belief that the threat posed by peer-to-peer lodging concepts such as Airbnb, Homeaway and Wimdu may have been overstated.
This response from the investors surveyed was unexpected given the prominence of this subject in the media and on recent conference programmes. External factors such as global instability (33%), Brexit (22%) and lack of availability and the consequent overpricing were the greatest risks according to our respondents. However, the announcement yesterday of Accor Hotels acquisition of home share company Onefinestay for £117m could imply that whilst investors may not perceive the sharing economy players as significant, the operators view this segment of the industry as an increasingly valuable part of their portfolio.
The results of the survey also show a healthy outlook on hotel investment with 100% of respondents stating an intention to commit capital in the coming year, with a quarter of these being new investors to the marketplace. In terms of scale, 92% of those polled said they planned to commit either the same or greater volumes of capital to hotel real estate assets in 2016.
Turning to the favourable geographies in which to invest, the UK was the preferred destination for hotel real estate capital in 2015. However, when asked which was their global target market for 2016, the investors surveyed placed Germany first ahead of the UK in second place. This shift can largely be attributed to the risk posed by a possible Brexit coupled with the availability of popular lease agreement operating structures readily accessible throughout Germany.