Hospitality investment has become an increasingly attractive option for investors looking to diversify their portfolios. In 2020, top hospitality investment companies worldwide opened up opportunities in hotels, resorts, restaurants, and other hospitality assets across the globe. By partnering with experienced companies, investors can tap into a resilient and growing industry.
Large Hospitality Investment Firms Have Extensive Portfolios
Many of the leading hospitality investment groups manage multi-billion dollar portfolios spanning hundreds of properties globally. For example, Blackstone, a prominent private equity firm, owns stakes in over 11 hotel brands through its real estate arm. With its size and scale, Blackstone can purchase individual trophy hotels or acquire entire portfolios from major brands.
Boutique Firms Target Niche Hospitality Markets
While mega investment companies focus on big-ticket purchases, boutique hospitality investment firms explore specialized sectors like luxury resorts, restaurants, and branded residences. For instance, Driftwood Capital targets resort-style hotels in popular leisure destinations across the Americas.
Hospitality Investments Provide Diversification
Experts often cite diversification as a key benefit of hospitality investment. The hospitality sector’s performance tends to have low correlation with other real estate classes like offices and apartments. Adding hospitality to a portfolio can help smooth out returns over market cycles.
Development Firms Expand Brand Footprints
Many hospitality developers partner with major hotel brands on new projects through franchise agreements. These partnerships allow brands to grow their global footprints rapidly without large capital outlays. At the same time, developers can leverage strong brands to enhance project success.
In 2020, top global hospitality investment companies provided investors with diversified exposure to hotels, resorts, restaurants and other hospitality assets. While mega investment firms target trophy acquisitions, boutique companies explore specialized sectors and development opportunities.