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Hospitality Net
19-05-2025
- Business
- Hospitality Net
2024 European Hotel Transactions
Market Overview: Upper Scale and Luxury The European hotel investment market in 2024 sent a clear message: prime, luxury hotel assets remain not only resilient but increasingly in demand. With €10.95 billion transacted across 137 deals, the year underscored an undeniable reality—high-end hospitality investments continue to flourish, even amid shifting market dynamics. From iconic five-star resorts to exclusive four-star properties, demand for premium assets is fuelling exceptional transaction volumes, as investors compete to secure the most valuable properties in Europe's leading destinations. At Global Asset Solutions, we are the experts at the forefront of this transformation. Our deep expertise in hotel asset management enables us to unlock untapped potential in every investment, skilfully navigating market complexities to maximise returns. With decades of industry leadership, we're not merely observing the trends—we're helping to shape them (as seen, for instance, in Madrid). In this white paper, we will present an overview of all significant hotel transactions within the 4-star and 5-star segments. Explore this report for an insider's perspective on the latest transaction trends, key investor movements, and our distinctive approach to enhancing high-end hospitality assets. Discover how we continue to set the benchmark for excellence and redefine what's possible in hotel investment. The Big Numbers Of The Year: — Source: Global Asset Solutions Total transaction volume for 2024 reached €10.95 billion, with 137 hotel transactions recorded. The average deal size stood at €79.9 million, among 4-star and 5-star properties. Over the course of the year, 23,561 rooms changed ownership, with the average price per key exceeding €465,000, reaffirming the strong valuations attached to high-end hospitality assets. For context on the price per key, countries like Portugal, France, and Italy exceeded €600,000 per key, while others such as Sweden, Poland, and the Netherlands were below €250,000 per key. Quarterly Trends Transaction activity fluctuated throughout the year, reflecting investment cycles, macroeconomic conditions, availability of assets and seasonal demand. Breaking down the year by quarter provides a clearer picture of how the market evolved. Total Transaction Volume and Rooms Transacted Capital deployment followed a similar trajectory, with notable peaks in Q2 and Q4. The number of hotel units transacted fluctuated, reflecting the scale of deals in each period. Q1 2024: Total transaction volume reached €2.03 billion , with 4,130 rooms transacted. Total transaction volume reached , with transacted. Q2 2024: Activity surged, with €3.17 billion in total volume, and 6,491 rooms changing hands. Activity surged, with in total volume, and changing hands. Q3 2024: The market softened, with a total volume of €1.93 billion , and 4,239 rooms transacted. The market softened, with a total volume of , and transacted. Q4 2024: The strongest quarter of the year, recording a total volume of €3.82 billion, and a record 8,701 rooms transacted, demonstrating a significant year-end push. — Source: Global Asset Solutions Transaction Amount and Average Transactions The number of transactions varied across the year, with Q1 starting cautiously before momentum picked up in Q2 and peaked in Q4 as investors sought to close deals before year-end. — Source: Global Asset Solutions Stars do come with a Price This report focuses exclusively on 4-star and 5-star hotels, highlighting their role in the hospitality investment market. The following analysis presents a comparison of 2024 transactions by hotel category, showcasing how star ratings impact deal volume, transaction values, and price per key. Total Volume of Transactions: Hotel Category — Source: Global Asset Solutions Number of Transactions and Average Transaction per Hotel Category — Source: Global Asset Solutions This confirms that while 5-star hotels had fewer transactions, they attracted the majority of the total investment volume, highlighting their premium valuation and investor preference for high-end assets. Price per Key and Total Rooms Transacted — Source: Global Asset Solutions 5-Star Hotels: €865,334 per key | 7,001 rooms transacted. €865,334 per key | 7,001 rooms transacted. 4-Star Hotels: €295,339 per key | 16,560 rooms transacted. Key Takeaways The data clearly demonstrates the premium value of 5-star hotels , which commanded a significantly higher average transaction size and price per key than their 4-star counterparts. This also reflects their higher replacement costs and the greater barriers to entry associated with developing similar assets. , which commanded a significantly higher average transaction size and price per key than their 4-star counterparts. This also reflects their higher replacement costs and the greater barriers to entry associated with developing similar assets. Despite having nearly half the number of transactions, 5-star hotels generated a higher total transaction volume , reinforcing their status as high-value investment assets. This does not automatically translate into a higher ROI, as luxury assets require active asst management to maximise performance. , reinforcing their status as high-value investment assets. This does not automatically translate into a higher ROI, as luxury assets require active asst management to maximise performance. 4-star hotels saw more frequent transactions but at a lower average deal size , reflecting their broader accessibility to investors seeking stable returns at a lower per-room cost. , reflecting their broader accessibility to investors seeking stable returns at a lower per-room cost. The price per key for 5-star properties—over three times higher than for lower-tier assets—highlights the premium investors associate with luxury. However, this perception of higher demand and exclusivity doesn't always translate into superior performance, as more affordable, higher-volume assets can often deliver stronger cash flow and higher ROI. Largest Deals The following illustrates the largest hotel transactions of 2024, based on confirmed information, property valuations, and market intelligence. While some figures have been publicly disclosed, others are estimations derived from industry sources. Exact amounts are not disclosed in this paper. Highest Value Transactions — Source: Global Asset Solutions 1. Park Hyatt Zurich - Zurich, Switzerland In April 2024, the Park Hyatt Zurich, one of Switzerland's premier five-star hotels, was acquired by a private equity firm based in the Middle East, partnering with a European institutional investor. The transaction was valued at approximately €500 million, making it one of the largest hotel deals in Switzerland that year. The deal includes the hotel's 142 luxurious rooms and suites, as well as a collection of high-end dining facilities and event spaces. This acquisition stands as a key example of the increased appetite for luxury assets in Switzerland, especially in Zurich, one of Europe's most stable and high-value real estate markets. The acquisition was driven by several key factors: the Park Hyatt's prime location in Zurich's financial district, its high-end brand appeal, and its reputation among international business and leisure travellers. Despite global economic uncertainties, Zurich remains an attractive hub for high-net-worth individuals (HNWIs), particularly due to the stability of the Swiss economy and its global financial significance. The buyer group views the Park Hyatt Zurich as a prime asset in their portfolio, with the potential for long-term capital appreciation and sustained revenue generation from both the luxury and corporate segments. Key Takeaways Strong Demand for Luxury in Zurich: The Park Hyatt Zurich acquisition demonstrates that Switzerland remains a top-tier destination for luxury hotel investors, driven by its economic stability, global business appeal, and high-net-worth tourism. Zurich, in particular, continues to attract substantial international capital. The Park Hyatt Zurich acquisition demonstrates that Switzerland remains a top-tier destination for luxury hotel investors, driven by its economic stability, global business appeal, and high-net-worth tourism. Zurich, in particular, continues to attract substantial international capital. Cross-Border Investment Trends: The involvement of Middle Eastern and European investors in this transaction reflects the growing cross-border flow of capital into the Swiss luxury hotel sector, underlining Zurich's status as a prime investment destination. The involvement of Middle Eastern and European investors in this transaction reflects the growing cross-border flow of capital into the Swiss luxury hotel sector, underlining Zurich's status as a prime investment destination. Operational Excellence Drives Returns: The asset management strategy focuses on maintaining the Park Hyatt Zurich's premium brand positioning while improving operational efficiency and capitalizing on Zurich's strong corporate demand. Investors will likely see strong returns from both business and leisure segments as these initiatives take effect. The asset management strategy focuses on maintaining the Park Hyatt Zurich's premium brand positioning while improving operational efficiency and capitalizing on Zurich's strong corporate demand. Investors will likely see strong returns from both business and leisure segments as these initiatives take effect. Long-Term Capital Appreciation: Given Zurich's status as a financial hub with sustained demand for luxury accommodations, the Park Hyatt Zurich is well-positioned for capital appreciation, ensuring a solid return for investors who are focusing on long-term growth. 2. Pullman Paris Tour Eiffel - Paris, France The Pullman sale reinforces Paris's status as a magnet for hotel investment. It came as Europe's hotel transaction volumes were rebounding sharply – high-profile deals like this helped push H1 2024 investment to its strongest level in five years. The transaction also exemplifies the ongoing rotation of assets from traditional owners to global investors. In this case, a domestic institutional owner (Amundi) monetised a large asset at a hefty price, while an international buyer group stepped in, drawn by the hotel's unique location and Paris's robust market fundamentals. The circa €330M price – about €767k per key – reflects premium pricing for prime Paris real estate. Such valuation is underpinned by the property's irreplaceable views of the Eiffel Tower and the city's high barriers to new supply. Notably, this deal occurred on the eve of the 2024 Olympics, indicating investors banking on strong near-term performance and long-term tourism growth. It also highlights increased cross-border and newcomer participation: a U.S. financial giant partnering with a nascent French firm to invest in French hospitality. This kind of collaboration underscores the intense competition for assets; in 2024, even lesser-known local firms (like QuinSpark) can team with global capital to successfully bid on marquee hotels. In summary, the Pullman Tour Eiffel acquisition fits a broader pattern of surging investor confidence in Europe's upscale hotel sector, the strategic swapping of assets between different types of owners, and the willingness to pay top dollar for hotels in cities where demand – from both guests and investors – consistently outstrips supply. Key Takeaways Big-Deal Liquidity in Gateway Cities: This transaction signals that investor liquidity for large hotel assets in cities like Paris is very strong. Even for a €330M deal, buyers emerged readily – a sign that global capital is keen to invest in well-located, cash-flowing hotels in top European metros. This transaction signals that investor liquidity for large hotel assets in cities like Paris is very strong. Even for a €330M deal, buyers emerged readily – a sign that global capital is keen to invest in well-located, cash-flowing hotels in top European metros. Portfolio Rebalancing Creates Openings: The Pullman sale exemplified how European institutions (e.g. REITs or funds) are pruning portfolios, creating opportunities for new entrants. Amundi's sale to Morgan Stanley/QuinSpark reflects a broader trend of legacy owners capitalizing on high valuations, while new investors step in believing there's further upside. For hotel asset managers, this shows the importance of timing – selling or buying – in response to market cycles and portfolio strategy. The Pullman sale exemplified how European institutions (e.g. REITs or funds) are pruning portfolios, creating opportunities for new entrants. Amundi's sale to Morgan Stanley/QuinSpark reflects a broader trend of legacy owners capitalizing on high valuations, while new investors step in believing there's further upside. For hotel asset managers, this shows the importance of timing – selling or buying – in response to market cycles and portfolio strategy. Local Expertise Matters: Partnering with a local operating expert (QuinSpark) was crucial for Morgan Stanley's success here. It highlights a lesson for investors: in complex markets like Paris, having on-the-ground knowledge and operational capability can be a deal-winning advantage. The JV structure allowed efficient due diligence and will facilitate execution of renovation and management initiatives post-close. Partnering with a local operating expert (QuinSpark) was crucial for Morgan Stanley's success here. It highlights a lesson for investors: in complex markets like Paris, having on-the-ground knowledge and operational capability can be a deal-winning advantage. The JV structure allowed efficient due diligence and will facilitate execution of renovation and management initiatives post-close. Upscale Segment Appeal: The asset is a four-star, not an ultra-luxury, yet it commanded a very high price – underlining the appeal of the upscale segment when it has unique attributes (like iconic views). Investors shouldn't overlook high-capacity, upper-upscale hotels in prime locations; as this case shows, such assets can be institutional-quality targets, offering stable returns and branding flexibility in the luxury-lite space of hospitality. 3. Rosewood Bauer Venice The historic Bauer Hotel on Venice's Grand Canal, set to become Rosewood Venice. The Bauer Hotel in Venice, a storied five-star 190 key property on the Grand Canal, was acquired in late 2024 by Mohari Hospitality in partnership with Omnam Investment Group. The seller, King Street Capital, bought the property from Austria's Signa Group in April 2024 when they fell into insolvency, before selling the asset on to Mohari. The purchase price was reported to be around €300 million, and the new owners plan to invest an additional €150 million in an extensive modernisation of the hotel, reducing the key count to 120+ luxurious rooms and suites. This significant capital outlay will support the property's transformation and rebranding – upon completion of renovations, the hotel is slated to reopen in 2025 as Rosewood Hotel Bauer. The Bauer is an iconic 19th-century Venetian palace-turned-hotel, renowned for its gothic-style façade and its location just steps from St. Mark's Square. Prior to closing for refurbishment in 2022, it offered around 190 rooms and suites across interconnected historic buildings. Signa had acquired the Bauer in 2019 from the local Bortolotto Possati family and begun restoration plans (including the creation of 90 new luxury suites), but work stalled amid Signa's financial collapse. Mohari's acquisition thus not only transfers ownership but revives a project to return this landmark to its former glory. In summary, this deal stands out as one of 2024's largest European hotel transactions – a complex distressed sale turned value-add investment involving a marquee Venetian asset that will soon re-emerge as Rosewood's latest ultra-luxury address. Key Takeaways Distress Can Yield Treasure: The Bauer case demonstrates that today's market challenges (like an owner's bankruptcy) can present rare opportunities. Investors who are prepared to move on distressed situations can acquire flagship assets at potentially favourable terms. The key lesson is to monitor for 'forced sellers' of high-end hotels – in this instance, a financial crisis at Signa opened the door for Mohari to grab an iconic Venetian property that might never have traded otherwise. The Bauer case demonstrates that today's market challenges (like an owner's bankruptcy) can present rare opportunities. Investors who are prepared to move on distressed situations can acquire flagship assets at potentially favourable terms. The key lesson is to monitor for 'forced sellers' of high-end hotels – in this instance, a financial crisis at Signa opened the door for Mohari to grab an iconic Venetian property that might never have traded otherwise. Ultra-Luxury Investment Confidence: Committing roughly €450M (acquisition plus renovation) to a single hotel is a bold play that underlines confidence in the ultra-luxury hospitality segment. Mohari's willingness to outbid even luxury conglomerates, and to pour capital into redevelopment, signals a belief that experiential luxury hotels in globally beloved destinations will generate strong returns. This bodes well for the future of heritage hotel revitalizations – we can expect more investors to follow suit in chasing 'once-in-a-generation' luxury assets. Committing roughly €450M (acquisition plus renovation) to a single hotel is a bold play that underlines confidence in the ultra-luxury hospitality segment. Mohari's willingness to outbid even luxury conglomerates, and to pour capital into redevelopment, signals a belief that experiential luxury hotels in globally beloved destinations will generate strong returns. This bodes well for the future of heritage hotel revitalizations – we can expect more investors to follow suit in chasing 'once-in-a-generation' luxury assets. Importance of the Right Partners: This transaction highlights the importance of aligning with experienced partners for complex hotel projects. Mohari teamed with Omnam for development expertise and selected Rosewood as the operator – a trio of financial strength, development skill, and brand prestige. For investors, the takeaway is that the successful execution of a major repositioning (especially in historic properties) requires assembling a team with complementary strengths. The result can be a significantly de-risked project and a product that meets the highest standards. This transaction highlights the importance of aligning with experienced partners for complex hotel projects. Mohari teamed with Omnam for development expertise and selected Rosewood as the operator – a trio of financial strength, development skill, and brand prestige. For investors, the takeaway is that the successful execution of a major repositioning (especially in historic properties) requires assembling a team with complementary strengths. The result can be a significantly de-risked project and a product that meets the highest standards. Broader Implications for Heritage Hotels: Lastly, the Rosewood Bauer Venice underscores a broader industry implication: many historic grand hotels in Europe are entering a new cycle of life via transformative investment. As seen here, there is growing institutional interest in preserving these landmarks and enhancing them for modern luxury travellers. This trend will likely continue, meaning more iconic properties (in Venice, Paris, London, etc.) will see rejuvenation. For the hospitality sector, this infusion of capital and fresh stewardship into legacy assets is raising the bar in terms of quality and innovation at the top end – and it reinforces that, when it comes to high-end hotel real estate, legacy and luxury go hand in hand. Largest Hotel Deals by number of keys — Source: Global Asset Solutions Where is the money being spent? Geographic Analysis of Europe's Hotel Investment The following presents a ranking of European countries by total hotel transaction volume in 2024, followed by an analysis of key differences in transaction size, unit counts, and price per room. — Source: Global Asset Solutions The United Kingdom, France, Spain, and Italy emerged as the most active hotel investment markets in 2024, collectively accounting for over half of the total transaction volume across Europe. — Source: Global Asset Solutions Most of the transactions were registered in just 5 countries: France, UK, Spain, Italy, and Germany. — Source: Global Asset Solutions Switzerland commanded the highest average transaction size and also highest price per key among the European countries. This is largely attributed to the fact that only five-star properties changed hands in Switzerland, resulting in a markedly higher average compared to other markets. Who got the Biggest Slice? The total hotel transaction volume across Europe in 2024 amounted to €10.95 billion, with significant variations in each country's share. — Source: Global Asset Solutions The United Kingdom (16.3%) and France (16.1%) led the market, collectively accounting for nearly a third of all transactions. Spain (13.8%) and Italy (12.9%) followed, reinforcing Southern Europe's continued strength in hospitality investments. Meanwhile, Germany (8.7%) and Switzerland (7.7%) maintained more robust transaction levels among other central European countries. Rooms Transacted in Europe: — Source: Global Asset Solutions Ranking Average Price per Key per Country — Source: Global Asset Solutions Switzerland achieved the highest average price per key, at €1.6M , more than double the second-highest market; reflecting the high barriers to entry for luxury operators but based on a small number of transactions. No 4-star hotel transactions were registered there in 2024. Otherwise, Portugal, France, Italy, Czech Republic and Ireland led the chart, all being above €600K as an average price per key across 4-star and 5-star hotel transactions. , more than double the second-highest market; reflecting the high barriers to entry for luxury operators but based on a small number of transactions. No 4-star hotel transactions were registered there in 2024. Otherwise, Portugal, France, Italy, Czech Republic and Ireland led the chart, all being above €600K as an average price per key across 4-star and 5-star hotel transactions. The United Kingdom, Spain and France led in total rooms transacted , totalling almost half of the hotels transacted in Europe. , totalling almost half of the hotels transacted in Europe. Countries such as France, Italy, and Germany balanced both strong price per key valuations and high unit transactions . and . Portugal ranked high in price per key (€685K) despite a lower number of keys transacted (513), suggesting that deals in the region focused on high-value assets rather than volume. Most active locations in Europe — Source: Global Asset Solutions Paris and London have emerged as the two most dominant cities in hotel transactions, each accounting for more than 10% of the total European hotel transaction volume. Paris, with €1.38B in transactions, led the market, while London followed closely with €1.27B. Their combined share of over 24% of the total €10.95B volume underscores their status as the primary hubs for hotel investments. The high transaction values in these cities reflect strong investor confidence, a robust tourism sector, and an enduring demand for prime hospitality assets in both leisure and business segments. Share of Total Investment Volume per City (only including most active cities = locations that attracted the most volume of investment) — Source: Global Asset Solutions Ranking Total Transaction Volume per City — Source: Global Asset Solutions Number of Transactions and Average Transaction per City — Source: Global Asset Solutions Rooms Transacted per City: — Source: Global Asset Solutions Most active cities ranked by average Price per Key: Paris – €936,171 Ibiza – €841,641 Prague – €714,988 London – €597,607 Madrid – €464,776 Rome – €398,791 Barcelona – €335,776 Edinburgh – €233,919 Lyon – €222,628 London and Paris had the highest number of rooms transacted, 2,120 and 1,473, respectively. Madrid, Barcelona, and Rome remained key investment cities, balancing high transaction volume and a competitive price per key. Paris led in average price per key (€936K) among the higher volume markets, followed closely by Ibiza (€841K), while Edinburgh and Lyon had the lowest price per key (€222K), indicating a more cost-effective investment landscape. The Main Key Players in Hospitality Transactions The following provides analysis hotel transactions based on investor type, highlighting their total investment volume, average transaction size, and their share in the 2024 hotel transaction market. Institutional Investors and Owner-Operators collectively accounted for almost 50% of the total hotel investment volume in 2024. Share of total investment volume per Investor Type — Source: Global Asset Solutions Total Investment Volume per Investor Type — Source: Global Asset Solutions Institutional Investors dominated the market, accounting for 27.6% of total transaction volume; followed by Owner-Operators with 21.2% of the total volume, indicating their strong presence in large-scale hotel acquisitions. Private Equity firms accounted for 19,7% of total transactions, highlighting their continued strategic investments in the hospitality sector. Number of Transactions per investor Type — Source: Global Asset Solutions Average Transaction Size per investor Type — Source: Global Asset Solutions Momentum into 2025 Early indicators from January 2025 suggest that strong investment appetite for luxury hotel assets continues, with 11 transactions recorded in the first month alone. The numbers from January 2025 — Source: Global Asset Solutions The total transaction volume for January reached €1.2 billion, with an average deal size of €109.09 million—a 36,5% increase compared to the 2024 average of €79.9 million. During the same month, 1,841 hotel rooms were transacted at an average price of €652,000 per key, reflecting a 40,2% increase from the 2024 average. This substantial jump in deal size signals a focus on larger-scale acquisitions and sustained confidence in premium hospitality investments. This early momentum suggests that investors remain confident in the stability and growth potential of high-end hospitality assets, setting the stage for another active year in hotel transactions across the European region. Global Asset Solutions Insights Uncovering the Strategic Layers Behind the 2024 Numbers At Global Asset Solutions, we don't just track and analyse data—we interpret market signals and translate them into strategic actions for our clients. Several clear trends emerged from the 2024 European hotel investment landscape, reinforcing the importance of experienced asset management partners in navigating a complex sector: 1. Trophy Assets Command Premiums, but Execution is Key The high transaction prices of landmark properties like the Park Hyatt Zurich and the Pullman Paris underscore investor appetite for prime assets. However, beyond acquisition, ensuring long-term value requires expert operational oversight, strategic CAPEX planning, and revenue optimisation—areas where Global Asset Solutions delivers proven results. 2. High demand for Resorts Whilst an entirely separate area for research, the high costs of development, and environmental pressures limiting potential for new build, the demand for high quality resort assets remains high and likely to remain so. 3. Cross-Border Capital Flows Drive Competition Middle Eastern, U.S., and Asian investors are increasingly active in Europe's hospitality market, often partnering with local players to gain operational insights. GAS acts as a bridge—offering global investors independent, expert guidance grounded in decades of European market experience. 4. Heritage Assets Demand Specialist Repositioning Complex deals like the Rosewood Bauer Venice reflect the growing trend of investors seeking value-add opportunities in historic assets. Our team's expertise in overseeing large-scale repositioning projects ensures that these iconic properties realise their full potential without compromising heritage value. 5. Strategic Timing of Exits and Entries Pays Off 2024 illustrated the benefits of proactive asset management—knowing when to sell, restructure, or reinvest. With strong institutional and PE activity, GAS supports owners in seizing the right market windows to maximise returns and future-proof their assets. Conclusion The 2024 European hotel investment market reaffirmed a critical truth: success in luxury hospitality is no longer just about location—it's about precision, expertise, and execution. As competition intensifies and deals become more complex, investors need a partner who understands not just the market but the operational realities that drive returns. Our team deliver more than reports. We work side-by-side with investors to unlock hidden value, mitigate risks, and position assets for long-term success. Our independent, owner-aligned approach ensures that every recommendation is made with your best interest at heart. GLOBAL ASSET SOLUTIONS is the leading Hotel Asset Management Company serving Europe, Middle East and Asia Pacific. The Asset Management and Advisory division provides a comprehensive range of hotel services. Contact us for more info on how we can help you make the soundest investment decision and grow your asset value. View source
Travel Daily News
19-05-2025
- Business
- Travel Daily News
First Hospitality launches First Investors
First Hospitality launches First Investors platform and $400m. GP fund, opening hotel investment to external partners amid strategic U.S. market opportunities. CHICAGO, IL – First Hospitality introduces First Investors, its dedicated hotel real estate investment platform, which has powered the company's lodging acquisitions and development for more than four decades and is now open to qualified outside investors. Concurrently, the firm also unveils First Investors GP Fund, which expects to supply sponsor capital for a targeted $400 million in U.S. hotel investment over the next 12 to 36 months. The platform is led by Chief Executive Officer David Duncan and governed by a seasoned ownership group: Sam Schwartz, Executive Chairman; Stephen Schwartz, founder and Chairman Emeritus. Collectively, the three executives have led more than $10 billion in hospitality transactions across value-add, ground-up, and adaptive-reuse strategies. Since 1985, First Investors and its affiliates have completed 45 hotel transactions, generating a 3.9x multiple of invested capital with an IRR over 20% on realized exits and currently own significant joint-venture positions in 18 hotels totaling 3,100 keys. Current representative investments include the Hiltons at McCormick Place (Chicago, IL), Hotel LeVeque, Autograph Collection (Columbus, OH), Tempo by Hilton Louisville Downtown NuLu (Louisville, KY), and the newly opened Hotel Ardent, a Tapestry Collection (Dayton, OH). 'First Investors benefits from direct alignment with our operating platform, providing early visibility into local market dynamics and operational trends well before they appear in public data,' said David Duncan, CEO of First Investors. 'This vertical integration provides a differentiated advantage for our investors, particularly in today's market environment, where dislocation is creating some very unique investment opportunities.' First Investors will focus on deploying the GP Fund alongside a select group of existing capital partners and other sophisticated investors into a portfolio of six to ten hotels, targeting 150 – 350-key, premium-branded or independent lifestyle assets located in growth markets with multiple demand generators. The firm will apply its proven value-creation playbook, which includes: Proprietary Sourcing – Draw on over four decades of experience, deep industry relationships, and a national footprint to identify off-market and strategically positioned opportunities where investment basis supports attractive risk-adjusted returns. Disciplined Capital Deployment – Maintain a selective, fundamentals-driven approach, aligning each investment with an appropriate capital structure that supports both near-term execution and long-term value creation. Integrated Value Creation – Utilize First Hospitality's operational platform to execute targeted capital improvements and operational enhancements, accelerating repositioning efforts and driving sustained cash flow and value growth. What sets First Investors apart is the fusion of institutional-grade underwriting and disciplined execution, driven by real-time insights from First Hospitality's award-winning management platform. This is paired with an entrepreneurial approach and a flexible capital structure, that has allowed First Investors to deliver strong, cycle-resilient results for its partners. 'Our GP Fund is all about alignment – approximately 20 percent of the fund will be our own capital, giving the firm and its senior leaders substantial skin in every transaction,' said Sam Schwartz, Executive Chairman of First Investors. Stephen Schwartz, Chairman Emeritus of First Investors, added: 'Bringing this platform to outside investors is the natural evolution of work we've been doing privately for 40 years through five lodging cycles.'
Skift
14-05-2025
- Business
- Skift
What Multi-Million Dollar Hotel Deals Say About India's Hospitality Landscape
Investors are not worried about the amount needed for investing in hotel projects. The returns are robust enough to be a motivator. Nearly 25 hotels in India changed hands in multi-million dollar deals in 2024, according to real estate firm JLL. These transactions primarily involved operational properties located in both business and leisure destinations, with a focus on Tier-2 and Tier-3 cities. JLL reports that this high volume of deals signals strong recovery and expanding footprint for the hospitality sector across the Indian subcontinent. 'There is capital available for hotel investments. The yields are very attractive compared to previous years,' said Jaideep Dang, managing director of the Hotels and Hospitality Group at JLL. 'Most of the transactions occurred in the 3-star and 4-star segments,' Dang told Skift. Only a small number of deals involved 5-star and luxury properties. 'Most of the luxury and 5-star hotels are tightly held by Indian listed companies. These companies aren't selling — they're buying.' According to JLL, nearly half of all hotel transactions in 2024 occurred in Tier-2 and Tier-3 cities. 'This trend has broadened the industry's reach, bringing quality accommodations to previously underserved markets such as Amritsar, Mathura, Bikaner, and several others,' the firm said in a statement. India is witnessing a surge in interest from hospitality chains. Last week, Hilton said that it plans to increase its presence in India by 10 times over the next decade. Over the next couple of years, the company plans to launch five new Hilton brands in the country. Accor is also planning to scale up to 300 properties across the country by 2030. Looking at 25-30 openings every year, the company is counting on expansion across multiple brands, ranging from lifestyle brands such as Ennismore to affordable Ibis and Mercure. International brands such as IHG, Ascott, Marriott, and Radisson are also looking at expanding their India portfolios. While IHG has introduced its newest midscale brand, Garner, to India, Singapore-based The Ascott Limited is focusing on Tier-2 and 3 cities to increase its portfolio from 5,500 to 12,000 units by 2028. Last month, Thai hospitality company Dusit Hotels & Resorts officially returned to India after it exited the country in 2016. It has 10 upcoming properties with an inventory of 800 keys. A Diverse Investor Base JLL also noted that high-net-worth individuals, family offices, and private hotel owners accounted for 51% of the transaction value in 2024. 'Since the pandemic, we've seen a pattern emerge,' said Dang. 'A lot of the activity is driven by Indian listed companies with long-term involvement in the hospitality business. There's also significant interest from individuals with private wealth — people who've made money in other industries and are now investing in hotels for annuity income and capital growth.' He added that the hotel industry's performance remains robust. 'Hotels are full, airlines are full, and load capacities are increasing. That's why more new investors are entering the market to build hotels.' Strong Momentum in Hotel Signings In 2024, more than 42,000 rooms were signed across branded hotels in India, with approximately 75% of those signings occurring in Tier-2 and Tier-3 markets, according to JLL. Dang pointed out a development trend in smaller cities: high local demand for food, beverage, and banqueting is driving the creation of hotels with fewer rooms but more event space. 'These cities aren't getting 500-key hotels,' he explained. 'You might see an 80-room hotel with 20,000 square feet of event space — similar to what you'd find in a major city. Only here, there would be far fewer rooms.' In the post-Covid era, hotel companies are rebalancing their portfolios. With the cost of land in major cities skyrocketing, building large luxury hotels in these locations is becoming increasingly unviable. 'So companies are diversifying — looking at mixed-use developments that combine hotels with malls or office spaces to offset costs and reduce financial risk,' Dang said. What am I looking at? The performance of hotels and short-term rental sector stocks within the ST200. The index includes companies publicly traded across global markets, including international and regional hotel brands, hotel REITs, hotel management companies, alternative accommodations, and timeshares. The Skift Travel 200 (ST200) combines the financial performance of nearly 200 travel companies worth more than a trillion dollars into a single number. See more hotels and short-term rental financial sector performance. Read the full methodology behind the Skift Travel 200. What am I looking at? The performance of hotels and short-term rental sector stocks within the ST200. The index includes companies publicly traded across global markets, including international and regional hotel brands, hotel REITs, hotel management companies, alternative accommodations, and timeshares. The Skift Travel 200 (ST200) combines the financial performance of nearly 200 travel companies worth more than a trillion dollars into a single number. See more hotels and short-term rental financial sector performance. Read the full methodology behind the Skift Travel 200. What am I looking at? The performance of hotels and short-term rental sector stocks within the ST200. The index includes companies publicly traded across global markets, including international and regional hotel brands, hotel REITs, hotel management companies, alternative accommodations, and timeshares. The Skift Travel 200 (ST200) combines the financial performance of nearly 200 travel companies worth more than a trillion dollars into a single number. See more hotels and short-term rental financial sector performance. Read the full methodology behind the Skift Travel 200.
Skift
11-05-2025
- Business
- Skift
Thailand's Hotel Market in 2025: Fewer Deals
A new forecast from hotel broker JLL hits a note of optimism at a time when some critics worry Thai tourism is hitting the skids. Expect people to do fewer hotel deals in Thailand this year, but for those deals to be bigger. Thailand's hotel investment market is returning to normal after last year's post-pandemic surge. Hotel brokerage JLL projects that total deal volume will reach 13 billion Thai baht ($385 million) in 2025 — about 40% below 2024's record from a one-time rush of delayed deals. A JLL report issued Thursday said investors are now focused on fewer but larger acquisitions. The average deal size is expected to reach THB1.8 billion ($53.2 million) in 2025. That would be 80% higher than the THB1 billion ($29.5 million) 10-year average. JLL believes that single-asset transactions will likely remain the norm, following notable deals like the 273-room Hyatt Regency Bangkok Sukhumvit, which in 2024 became Thailand's largest-ever single hotel transaction. Key Drivers of Hotel Investing There are growing concerns that Thailand's tourism recovery may be losing steam. Earlier this month, the Tourism Authority of Thailand signaled it may lower its 2025 forecast for international arrivals to 35 million, still short of the 2019 peak of roughly 40 million. Yet when it comes to hotel investing, Thailand remains a relatively strong market. JLL remains optimistic that Thailand will benefit from pent-up demand from group travelers and mass tourism, especially from markets like Australia. It points to several other key drivers: Interest rates holding steady or dropping should help with deal flow. Thailand's anticipated lower interest rates in 2025, combined with continued positive sentiment in the tourism sector, should support further investment, albeit in a more focused and strategic manner than the investment boom of 2024, JLL believes. "In an inflationary and high-interest rate environment, Thailand has stood out as one of the few Asian countries offering a positive yield spread over borrowing costs," the report notes. Luxury demand drives investment growth. For 2025, upper-tier hotels are expected to see stabilized occupancy rates with gradual growth in average daily rates. Economy to mid-tier hotels may see both rising average daily rate and occupancy levels, potentially narrowing the performance gap with upscale properties, if inbound tourism recovers as hoped. Geographical diversification expected. While the capital city, along with Phuket and Samui, will remain prime investment destinations, the report anticipates interest spreading to other markets within Thailand this year. The Thai government has signaled interest in supporting the development of potential new tourism hotspots, similar to how Mexico invented Cancun as a resort city. That said, Bangkok will continue to dominate the landscape, accounting for nearly 60% of national transaction volume this year. Financing Landscape Evolves Greater access to capital. More Thai hotel deals involve leasing because of increased access to non-traditional forms of lending. A notable shift in 2024 was investors' increased willingness to consider leasehold properties, moving away from the pre-pandemic focus almost exclusively on freehold opportunities, partly thanks to the new types of financing available from next-gen firms. Non-bank financial institutions, including leasing companies and specialized lenders, are gaining market share by providing more flexible financing solutions for smaller or unique projects, albeit at higher interest rates, JLL said. Sustainable financing options continue to become more common. Major Thai banks and international lenders now offer so-called green loans specifically for financing environmentally friendly hotel projects, as well as sustainability-linked loans with interest rates tied to predetermined sustainability performance targets. JLL believes the new financing could help attract new players to the market.
Yahoo
08-05-2025
- Business
- Yahoo
Thai tourism boosts hotel investment outlook
Thailand's hotel investment market is projected to maintain its growth trajectory in 2025, following a record-breaking year in 2024. According to JLL's latest Thailand Hospitality Financing Guide, the sector's resilience and strong investor interest are expected to continue driving activity across various segments. In 2024, hotel transaction volumes reached THB 22.3 billion, significantly surpassing the country's average since 2010. This surge was attributed to robust trading performances, particularly in the upscale and luxury segments, and favourable economic conditions that offered positive yield spreads over borrowing costs. Investors displayed increased flexibility, showing interest in both freehold and leasehold properties, indicating a broader range of opportunities in the market. Looking ahead, JLL forecasts that hotel transaction volumes in 2025 will reach approximately THB 13 billion, maintaining levels above the historical average. This sustained momentum is supported by anticipated growth in international tourist arrivals, projected between 38 and 40 million for the year, bolstered by improved air connectivity and strategic visa policies. The hospitality sector's positive outlook is further reinforced by Thailand's position as a strategic investment destination in Southeast Asia, attracting both domestic and foreign investors seeking opportunities in a recovering and evolving market landscape. "Thai tourism boosts hotel investment outlook" was originally created and published by Hotel Management Network, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
