The hotel industry has been experiencing impressive growth dynamics since the end of the pandemic. Room rates are rising significantly due to high demand.
Jean-Marc Palhon, Chairman of EXTENDAM explained: “Occupancy rates and prices are today very high across Europe. Trends will probably evolve in the next 12 to 18 months. If interest rates decline continues, many investors will be less concerned and will have easier access to credit, which will increase asset values“.
To fully capitalize on the potential of the hotel industry, investing in real estate private equity funds is an attractive option. By combining investment in the property and business asset, investors can benefit from rental income and potential capital gains from the business, with returns that can reach double digits.