Investing in hospitality real estate

PERE’s 2025 Hospitality report examines how operational complexity is redefining performance

Hospitality has matured into one of real estate’s strongest performers, with resilient post-covid travel demand and scarce new supply driving continued investor interest. The sector’s next phase of growth lies in mastering operational detail – where active management, technology integration and whole-system investment are reshaping value creation across global markets.

INSIDE PERE'S HOSPITALITY REPORT

hotel bell; hospitality

Six ways managers and investors are thinking about hospitality

The sector has emerged as one of commercial real estate’s strongest performers with multiple levers for value creation.
hotel sign, hospitality

Underfunded capex driving US hotel delinquency jump

A lack of reinvestment is exposing weaknesses in hotel portfolios, tightening the screws on financing options.

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Hospitality steals the show as recovery gets underway

The growth of leisure travel is fueling the rebound of the global hospitality sector across all segments.

Hospitality’s outlook brightens as RevPAR crosses pre-covid threshold

The US has seen the most improvement, reaching a record 3.2 percent average revenue per available room growth last year.

Arrow Global: Modern travelers demand more in Southern Europe

Portugal and other Southern European countries are ripe for a repositioning play thanks to changing market dynamics, say Arrow Global’s John Calvao, Thomas Rubi and Marten Foxon.

Hospitality real estate is ahead of the experiential trend

The ‘hotelification’ trend of providing greater amenities in other asset classes shows the importance of experiential offerings, says Stoneweg Group’s CEO.

Eurazeo: Hospitality offers attractive risk-return profile for investors

Operational leverage and expertise are key to maximize value creation for real estate investors, says Eurazeo’s Pierre Larivière.

Targeting the ‘social’ in ESG is a natural fit for hotels

Hotel investors and customers are increasingly focused on social sustainability and community initiatives.

Rockbridge on navigating market disruptions in hospitality

Despite the current challenges in hospitality, there are significant opportunities for well-capitalized owners, says Rockbridge’s Jim Merkel.

Betting on the growth of casino resorts

The US has seen a wave of casino openings, with more in the pipeline, while several Asian locations build integrated resorts.

Since 2019, 21 hospitality vehicles globally have attracted almost $5 billion, against a target of $2.75 billion. Investors are once again hungry for hospitality, particularly in the US and Europe.

Operators are adapting hotels’ offerings to cater to travelers’ increased demand for experiences, but also have to grapple with a labor shortage, as the sector bounces back from a challenging couple of years.

Prime destination: Hospitality makes a comeback

Investors are returning to the sector after it proved its resilience and adaptability.

Investors are checking into the hospitality sector

Capital is returning to the hotel sector. What could that mean for pricing and where is it going to deploy? Peter Benson discovers that a recovery in the sector is not without challenges.

Schroders: Hospitality is ‘a valuable operation’

Through upgrading the traditional landlord-tenant relationship and a greater focus on ESG, operational real estate can optimize value for both parties, says Schroders Capital’s James MacNamara

Optimizing assets to drive long-term profitability

The hospitality sector’s post-pandemic rebound has been impressive, but maintaining long-term profitability will require a shift in how current assets are utilized, writes Barclay Ballard.

CapMan: ESG is part of the Nordic DNA

ESG has long been part of the narrative within the Nordics and it is only a matter of time before it impacts cap rates, say CapMan Real Estate’s Thomas Laakso and Simon Hultén

Azora on hospitality’s ‘rapid recovery’

The hospitality sector, and the leisure segment in particular, has shown impressive resilience in the face of recent challenges, with recovery progressing faster than expected, say Azora Group senior partners Javier Arús and Cristina García-Peri

Hospitality recovery: Labor pains

As the sector recovers from the covid-19 pandemic, Keith Button finds short-staffed hotels are trying to improve service with fewer employees.

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