Hotel investments are holding their own as a sought-after asset class, according to a recent survey by mrp hotels. The survey is based on the assessments of 42 industry experts, including investors, asset and investment managers, and property valuers. The results indicate a positive assessment of long-term prospects: approximately 45 per cent of respondents expect hotel investments to increase in significance over the next three years.
The attractiveness of hotels compared to other real estate segments is underscored: over 90 per cent of participants consider hotel properties to be at least as attractive or more attractive. Martin Schaffer, Managing Director at mrp hotels, highlighted that hotel properties are perceived as a resilient and future-proof component of institutional portfolios. He further explained that operator quality, location profile, and flexible usage concepts are particularly in focus.
For a large proportion of the survey participants, hotel investments already play a central role in their area of activity; almost 70 per cent rate their importance as high or very high. Expectations for the future are also largely positive, with around 45 per cent of experts assuming that the share of hotel investments in real estate portfolios will continue to increase. Only approximately 14 per cent expect a decline, while 41 per cent anticipate no change.
In the attractiveness ranking, hotels position themselves positively compared to other property types. Although residential properties are still considered the most attractive asset class, hotels, together with logistics properties, rank ahead of office and retail properties. Mr Schaffer interpreted this as evidence of the increasing establishment of hotel properties as a strategic component of diversified real estate portfolios.
The greatest investment momentum for the next two years is expected in specific regions. Spain leads with 55 per cent, followed by the domestic market Germany with 40 per cent, Italy with 33 per cent, and Scandinavia with 29 per cent. This indicates a preference for markets with strong tourist demand and stable growth prospects. Urban A-locations continue to dominate location preferences, as over 83 per cent of respondents consider metropolitan areas to be particularly in demand. At the same time, holiday regions and resorts are regaining importance with 43 per cent, indicating stable demand in the leisure segment.
The survey results show that global tourism demand development, at 60 per cent, and stable operator performance, at 55 per cent, are the key decision drivers for hotel investments. Conversely, the market environment remains challenging. Over 83 per cent of participants identify the current interest rate and financing environment as the biggest burden. Additionally, rising construction costs (57 per cent) and operator risks (45 per cent) significantly influence investment decisions. Regulatory requirements (10 per cent) and ESG requirements (5 per cent) currently play a minor role.
Participants see the highest growth potential in budget hotels and serviced apartments, each with 52 per cent. These segments benefit from travellers' increased price awareness and the growing demand for flexible and longer-term accommodation options. Mr Schaffer concluded that the market is evolving from the classic standard product to a specialised operator and concept market.
