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The latest in-depth sector report from Intelligent Partnership looks at Hotel & Resort Property. This is part of the Alternative Investment Report series which are accredited by the CII and IFP for CPD purposes.

The report comprises of a detailed investment case, market update, investment considerations and potential in the sector. Alongside this there is a detailed review of the retail investment opportunities in the sector as well as an alternative investment register.

The comprehensive investment register is the only place where you can see all of the direct, non-regulated, non-mainstream pooled investments (NMPI) and collective investment schemes in the hotel and resort sector gathered together in one place, allowing readers to do whole of market research. The register includes 119 directly held property investments, 29 investments with a corporate element and 13 collective investment schemes.

An Overview of Hotel & Resort Property

The hotel and resort property sector includes such a wide range of opportunities, locations, investment structures and risk/return profiles that while many property investments do indeed qualify as mainstream, hotel and resort property should still be considered “alternative”.

This sector has seen its fair share of failures which have resulted in intense scrutiny and tighter controls over the last year. It has also fallen in and out of favour with investors, but there is now a large amount of optimism as to what the future may hold for the sector.

The success of a hotel or resort property is dependent upon high occupancy. A particular property achieving high levels of occupancy can be something that is entirely divorced from the wider economy or the mainstream markets.

If investors can find these sorts of properties, they can provide returns that are uncorrelated from the rest of a more mainstream investment portfolio, providing diversification and reducing overall portfolio volatility. Returns from these investments generally range from 7-10% per year. There are also secure leaseback investments offering as low as 3.5% per year, and high risk/speculative properties offering 25% per year.

The report focuses on investment opportunities into off-plan, new build or recently refurbished properties that intend to run a business providing guest accommodation. The report looks at the mainstream opportunities allowing investors to gain exposure to this sector so that readers can make meaningful whole of market judgments. The intention is to focus on direct non-regulated investments and lightly regulated UCIS schemes as these form the bulk of retail investment opportunities and are less well covered by the analyst community.

Primary and secondary research has been undertaken, including a survey of some of the biggest product providers, in order to highlight opportunities and trends in the sector and be as accurate as possible. Further analysis has drawn conclusions and recommendations that just might point towards the future for hotel and resort property as an investment sector.

Contents

•        Introduction
•        Investment Case
•        Market Update
•        Retail Investment
•        Establishing Investment Criteria
•        Research and Due Diligence
•        Distribution Update
•        Property and SIPPs
•        SWOT Analysis
•        Product Provider Survey Analysis
•        Investment Register: Findings and Analysis
•        Regional Spread: UK
•        Regional Spread: Global
•        Investment Register

 Why is the Hotel & Resort Property Report Relevant?

The hotel and resort property sector is diverse and extremely wide ranging and this report aims to educate the reader and aid their understanding of the sector. The report is aimed at advisors, intermediaries, sophisticated investors, SIPP operators, product providers, developers and other market practitioners who have an interest in the sector.

The intention is to capture the current state of play: the drivers that are shaping the sector; the opportunities that are out there; changes in regulation; pitfalls to avoid and how to invest sensibly. This should assist readers and help them make informed decisions about their involvement in this sector.

The alternative investment register lists all of the 161 hotel and resort property investments that we have been able to collect data for.

Registered subscribers of Intelligent Partnership can access a complimentary copy of the report here and claim CPD towards their member scheme; other interested parties can purchase a copy of our report all by clicking on the following button:

Should you be interested in a low cost monthly subscription to gain access to all of our AiR reports, articles, videos and accredited training on alternative investment please visit our subscriptions page.

We hope you enjoying reading our report on hotel and resort property and as always we welcome your comments and feedback.