Which steps are necessary to be and remain sustainable in the field of environment, social and governance (ESG)? And which players must lead the way hand in hand? A guide from mrp hotels.
Martin Schaffer, Managing Partner mrp hotels, in exchange with CC-News International, the newspaper for EXPO REAL, the international trade fair for commercial real estate & investment:
– The current dynamics in the hotel real estate market
– Expected consolidations on the hotel market
– Investor challenges: Interest rates, risk, collateral, contracts, yields
After two challenging years in the hotel real estate segment, the road to recovery started this spring, bringing up the positive sentiment in the hotel investment market at the same time. Various factors such as the removal of travel restrictions and the pent-up demand for travel among the population are accelerating the recovery of the hotel market and thus strengthening investor confidence. This is particularly countered by the current economic and political developments.
In order to fight inflation, the key interest rates in the USA are currently being raised by the FED (= Federal Reserve System). The FED raised its key interest rate by 0.5% at the beginning of May 2022 and in June, by 0.75% – as much as in 1994. The “zero interest rate level” is expected to settle between 3% and 4% by 2023.
While we suspected at the beginning of the pandemic that “nothing will be the same”, we could note some things have remained the same: Development pipelines are well filled, paperwork still reigns at check-in and the breakfast buffet has remained as well. We have analysed what we have learned from the last few months and what we can expect in the coming year and dared to look ahead to 2022.