With a sharp and immediate decline in occupancy rate in hotels, the hospitality sector has been one of the hardest-hit real estate sectors during the pandemic. Kevin Colket, founder and CEO of Global Hospitality Investment Group, told PERE that investors should look at unlevered hotel acquisitions now and layer the investments with debt over time when there is a greater visibility on cashflow. He also expects high-net-worth individuals and sovereign wealth funds to be the first movers to make hotel investments as they look for preservation of value and moderate growth in the long term.
Colket was speaking to PERE in April.