Hotel investments: dynamic opportunities in the hotel market

By: Trademagazin Date: 2024. 09. 25. 11:27

One of the main topics of the Portfolio Property Investment Forum was the investment opportunities of hotel assets, with particular regard to the Hungarian market. In his opening speech, Márton Takács, head of Moore Hungary Hotel Advisory and Hotel and Leisure Global Sector, spoke about the rise of hotel industry investments and the new role of rental contracts. The hotel industry, as an investment tool, offers attractive opportunities despite the inflationary pressure, to which investors are paying more and more attention – reports Pénzcentrum.

The attractiveness of hotel assets and market trends

In his presentation, Márton Takács emphasized that the hotel market, as an asset class, has received considerable attention in recent years. In 2023, the investment volume was still weak, but the first half of 2024 brought a significant recovery, and this trend is expected to continue in 2025. Private equity funds remain the leading buyers in the market and the proportion of new entrants is high, indicating that interest in investing in the hotel industry continues to grow.

The average hotel prices were able to follow and even exceed the rate of inflation, which also strengthens the desire to invest. The sector’s resilience, i.e. its ability to quickly adapt, is particularly attractive to investors, as it has been proven even during the pandemic that crises do not reduce people’s desire to travel.

The situation of the domestic market and investment opportunities

The current state of the hotel market and investment opportunities were also discussed in the panel discussion. According to Andrea Róna, development director of Danubius Hotels, hotels are long-term investment vehicles, and it is extremely important for investors to time their entry and exit well, as travel habits change relatively quickly. According to Balázs Fóti, Wing’s hotel development director, we are currently at the beginning of a growth cycle that promises long-term stability.

During the conversation, the differences between Budapest and rural markets were also highlighted. The offer of the capital’s hotel market still holds great potential, and although some secondary cities such as Debrecen were also mentioned, the participants were cautious when talking about investment opportunities in rural markets.