LONDON, July 22, 2020 (GLOBE NEWSWIRE) — Hospitality Insights, a division of Questex, launches the second quarterly Investor Sentiment Assessment, in partnership with ABP Invest, an advisory firm providing strategic outlook and research on geopolitics, economics, markets and FX and a frequent keynote speaker at Questex events. The assessment captures the intentions of investors with over $150 billion in assets under management.
“The Investor Sentiment Assessment is an important index for the hotel investment sector particularly at a point in time when the industry is reeling against the backdrop of an estimated $200 billion wall of money bearing down on it,” shares Alexi Khajavi, Group President, Travel & Hospitality, Questex. “It’s encouraging to see investors are as committed as ever to hospitality as an asset class and we expect Q4 2020 and certainly Q1 2021 and beyond to be active with regards to deal making and transactions.”
The Q1 assessment, which is available for download here, was launched at the start of the Covid-19 pandemic, at a time when the sector was reeling, and this latest edition tackles the second phase of the outbreak, as the sector tentatively reopens around the world.
Thanos Papasavvas, founder & CIO, ABP Invest, said: “There has been a marked improvement on investors’ economic sentiment in this quarter’s Hospitality Insights Investor Sentiment Assessment, with 65% of investors expecting improved economic conditions over the next 12 months. Yet, whilst the broader economic sentiment has improved markedly since March, the investment sentiment for hotels has not had the same turnaround, with reduced positive sentiment and increased uncertainty. This has also led to an increase in the number of investors who think the hotel investment market cycle is in a contraction (65%) compared to 53% last quarter.”
Papasavvas added, “In terms of investment preferences, Germany stood out as the preferred investment location overtaking the UK, Italy and Spain. We believe this was instigated predominantly, but not only, by Covid-19. From an economic perspective, Germany’s contained levels of Covid-19 alongside the most generous fiscal support amongst any other government in percent of GDP terms, helps provide economic support and stable consumer sentiment. From a social perspective, a further two elements have also converged in our view: the constrained travelling opportunities from Covid-19 and the broader concerns on climate change which have both created a shift towards ‘staycations’ with Germans ‘finding their own country’ again.”
One key theme that has emerged is the investor interest in what is now a mainstream asset class, with M&A expected to flood out of this crisis. A vast majority of respondents classify themselves as net buyers (78%), with an optimal holding period of 6-10 years, which holds consistent with responses from our Q1 assessment. Travel will return, is the feeling, with pent up demand from both travellers and investors fuelling hope and keeping the focus on the sector.
The Q3 edition of the Hospitality Insights Investor Sentiment Assessment will be reserved for Hospitality Insights subscribers only. For more information on subscriptions, please contact Peter Kealy, Delegate Sales Representative, email@example.com.
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Marketing Director, Questex Travel & Hospitality