Preqin: Hospitality REITs Looked Strong in 2018

October 31, 2019 | Investments, Latest News, News, Real Estate
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A new report shows the strong growth of the hospitality real estate sector.

A new Preqin report is out.

Preqin joined asset manager Pro-invest Group to track the performance of the hospitality REIT industry. The result is a new study showing the sharp growth across the sector this decade.

According to the report, sector fundraising has doubled over the last decade. In 2017, capital raises totaled about $31 billion, an all-time high for the sector. In 2018, the number of hospitality-funds that closed hit 62.

“The hospitality sector has seen a flurry of activity in the past couple of years, hitting levels not seen since the Global Financial Crisis. Returns in the sector have outpaced both office and residential assets in every vintage year since 2010, and investors are taking note,” said Justin Hall, Real Estate Product Manager – Preqin.

“While the industry remains heavily centered on North America, there seem to be significant opportunities for growth in less saturated markets like APAC. The success of firms like Pro-invest in these regions, and the growing investor appetite for hospitality, suggest that we have not yet reached a peak for the industry,” he added.

Additional Details from the Pro-Invest-Preqin Report

Meanwhile, investors have deployed roughly $110 billion into private equity real estate funds (PERE) that focus on hospitality since 2015.

The Preqin report further shows that North America has been the primary market for deal flow. This market saw roughly 62% of activity for the sector.  Finally, activity in Europe and APAC has been growing, and accounts for respective representation of 28% and 9%. You can access the full report, here.

Related: Commercial Observer Releases List of Top Multifamily Markets

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