Questex's Hospitality Insights Releases Investor Sentiment Assessment Q2 2021
LONDON, July 28, 2021, the industry's trusted investment and development news platform from Questex,has released the Q2 2021 results of the quarterly Investor Sentiment Assessmentin collaboration with ABP Invest. Hospitality Insights provides deal-makers with the latest information on trends and opportunities and is the official news arm of top global hospitality conferences, The Annual Hotel Conference, The International Hospitality Investment Forumand The Resort & Residential Hospitality Forum.
The release of the Q2 Investor Sentiment Assessment has revealed there is a significant level of optimism for the bounce-back of the hospitality sector, with hotels seemingly holding the key to the recovery.
There has been a continuing improvement in expectations of economic conditions for the ensuing 12 months, with investors expecting a 'significant improvement' having increased by 50% from 40% of investors in Q1'21 to 60% of investors in Q2'21. The proportion of investors expecting a deteriorating economic climate has reached new record lows at 2%, even lower than last Quarter's 6%. Finally, only a small 2% of investors expect economic conditions to remain stable.
Hotels remain at the top of the list for a third consecutive Quarter as the best investment opportunity over the next 12 months, followed by Serviced Apartments and Resorts. At the other end of the scale Hostels, Senior Living and Co-Working are expected to provide the least attractive opportunities.
When asked to consider the most attractive cities for hotel investment the response was clear; the European cities London, Barcelona and Paris came out on top, with Barcelona ousting Rome from the top three this Quarter.
This bullish outlook on the hotel investment market is no doubt buoyed by continued monetary and fiscal support, coupled with the progress of vaccination programmes. Investors hold a positive view of the current state of the hotel investment cycle, with 54% believing we are in the 'recovery/upturn' phase. Despite the frothiness in the market, ABP Invest are keen to point out some potential problems on the horizon.
"In our view the optimism on the economic environment so far was warranted. We had been positive since last spring expecting policy makers, politicians and central bankers to do 'whatever it takes' to ensure the economic crisis does not manifest itself into a socio-political crisis with far more significant consequences and costs," Thanos Papasavvas, founder and chief investment officer, ABP Invest, said.
"However, we are cognisant of the near extreme level of positive economic sentiment amongst investors with 96% expecting improving economic conditions for the ensuing 12 months. There are potential risks on the horizon such as rising yields and tighter monetary policy on the back of higher-than-expected inflationary pressures."
As the global crisis rumbles on, there has been a marginal change in the rate of investor's expectations regarding themselves as Net Buyers (88%) and Net Sellers (12%), when compared to last quarter's 89% and 11% respectively.
Over the course of the past 16 months, the assessment was only open to a select group of investors that actively attend the Questex portfolio of hospitality events and provide a healthy representation of the entire hospitality investment ecosystem; including institutional investors, private property owners, family offices, private equity and high net worth individuals. As the investor pool grows, Questex will be opening submissions to vetted investors who wish to participate and in turn, have the opportunity to debrief with fellow contributors on the findings. Those interested can complete this brief form.
NOTES TO EDITORS
About the Hospitality Insights Investor Sentiment Assessment
The assessment was launched at the start of the pandemic to monitor buyer and seller sentiment, during a time where tracking investors' appetites became more crucial than ever. The data captures overall proportions of dry powder in hospitality, interest and allocation in various investment segments, regions, and asset classes, yield expectations, potential threats, and environmental, social, and governance (ESG) strategies.
The Q3 assessment will open in September. Sign up for Hospitality Insights' newsletters hereto stay up to date and follow the company page on LinkedIn here.
About Questex
Questex helps people live better and longer. Questex brings people together in the markets that help people live better: travel, hospitality and wellness; the industries that help people live longer: life science and healthcare; and the technologies that enable and fuel these new experiences. We live in the experience economy - connecting our ecosystem through live events, surrounded by data insights and digital communities. We deliver experience and real results. It happens here.
Media Contact
Leah Braithwaite
Marketing Director, Hotel Investment
lbraithwaite@questex.com
(0)203 318 8340
