Hotel investment overseas opportunities on the rise
Business people interested in investing in hotel ventures abroad have been advised that now is the best time to acquire a property.
According to Jeff Weinstein, editor-in-chief of hospitality publication Hotels magazine, a number of hotels are currently available at a favourable cost, so investors looking for a bargain would do well to make purchases as soon as possible.
Mr Weinsten pointed out that investment in the mid-range European market is particularly attractive at the moment because hotel assets - particularly those held in a number of countries in Europe and in the United States - are depressed.
This means that generally speaking, these assets are now available at a great discounted price to replacement cost.
Mr Weinstein explained that the cost of hotel assets is likely to be most appealing to foreign investors who would be interested in conducting money transfer transactions to acquire property in Europe.
He pointed out that now is particularly a good time for companies based in China with an interest in travel, tourism and hospitality to acquire hotel assets for the long term.
According to Mr Weinstein, the HNA Group's recent acquisition of a 20 per cent stake in NH Hoteles further illustrates why mid-range hotels are increasingly becoming an attractive asset for international investors.
"HNA has become very acquisitive in the hotel space, also recently aiming to acquire the luxury Amanresorts chain; NH Hoteles needed capital investment and apparently, HNA recognised it as a good investment," Mr Weinstein said.
"This is specifically interesting as outbound Chinese travellers discover markets like Spain. HNA can capitalise on this sales opportunity by marketing its airline brand and its new hotel brand affiliation with NH."
Marc Prichard, sales and marketing director at Taylor Wimpey Espana, recently said investment opportunities are on the rise in Spain after the Spanish government recently cut its VAT rate.