An institutional investor is a company or organisation that invests large amounts of capital in various asset classes. These include banks, insurance companies, pension funds, investment companies, foundations and family offices. Unlike private investors, institutional investors have extensive market knowledge, high investment volumes and often long-term investment strategies. They play a central role in the financial and real estate markets, as their decisions can influence large capital flows. In the hotel industry, for example, institutional investors invest in hotel real estate, hotel real estate funds, or direct operator participations in order to achieve stable returns and value appreciation.