The hospitality industry saw major disruptions in 2020 due to the COVID-19 pandemic, but some hospitality investment companies were able to weather the storm and even expand their portfolios. This article analyzes the top hospitality investment firms in 2020 based on total investments, key deals, and growth strategies.
Blackstone remained the largest hospitality investor despite market downturn
The Blackstone Group retained its position as the top hospitality investment firm in 2020 with over $6 billion invested across multiple hotel deals. Key moves included expanding its partnership with Extended Stay America and acquiring a portfolio of hotels and casinos from MGM Resorts International. Blackstone has built resilience by focusing on longer-stay accommodations.
Highgate pursued distressed assets and reinvented properties
Highgate maintained its high ranking among hospitality investment giants in 2020 by targeting distressed hotels and breathing new life into them. Notable deals included the acquisition of the Grand Hyatt Buckhead in Atlanta and a takeover of the famed Fontainebleau Miami Beach. Highgate’s opportunistic yet strategic approach helped strengthen its portfolio.
GIC expanded into student housing amid education shifts
Singapore sovereign wealth fund GIC made headlines in 2020 hospitality investment by diversifying into student housing, acquiring a portfolio of UK student accommodation properties from Goldman Sachs. With remote learning risks, student housing gained appeal as a resilient asset class. This demonstrated GIC’s forward-thinking investment strategy amid fluid market conditions.
Despite strong COVID-19 headwinds, leading hospitality investment firms like Blackstone, Highgate and GIC pursued major deals in 2020 that underscored the long-term potential of hotels, casinos and specialized real estate like student housing.