Strong demand in the vacation hotel industry attracts investors.
The vacation hotel industry is one of the clear winners of the pandemic, according to a recent study by leading consultancy mrp hotel.
In contrast to hotels and inner-city hotel chains, which are geared towards business travelers, vacation resorts – especially in Austria as well as on German coasts – look back on a successful summer and fall season.
For investors, the asset class has not been on the table just since the Corona crisis, but developments over the past year and forecasts for 2022 are increasingly calling institutional investors to spread their risk and benefit from returns.
“The asset class has become a very attractive investment opportunity,” explains Oliver Soini, CEO of SOINI ASSET. Last year showed that summer tourism is taking over from winter tourism. The segment has proven to be particularly crisis-proof. Hotels and vacation homes in popular vacation regions were quickly booked up. “Tourists are discovering new recreational activities in regions they previously knew only from skiing vacations,” Soini points out. “The potential lies primarily in the thematic orientation of the vacation resorts – these make it a comprehensive retreat that provides a special recreational experience regardless of the season.”
In the resort hotel industry lies the potential to expand location tourism. This is because, in addition to good infrastructure and varied leisure opportunities, it offers comprehensive services. “Current market conditions are encouraging investors and operators to acquire properties in order to develop them into successful destinations. These are primarily flexible existing properties in which new innovative concepts are taking shape,” explains real estate specialist Hamid M. Farahmand from Hamburg. For years he has been managing international projects in the field of vacation real estate and is on board at SOINI ASSET as a partner for Leisure Hospitality. “A special challenge for hotel developers is to manage the balancing act between individuality, i.e. small and fine, and the structural advantages of a certain scale.”
So we can be curious about what will happen on the market in the near future!