The Caterer
Jacobs Media Group is honoured to be the recipient of the 2020 Queen's Award for Enterprise.

Investors give hotels less time

28 March 2006 by

Equity firms have slashed the length of time they invest in hotel properties by up to half, a new study has found.

Research from hotel property agency Jones Lang LaSalle Hotels (JLL) found that the window for hotel investments, previously three to seven years, had shrunk to two to four years.

Arthur Adler, managing director of JLL, said: "This leaves hotel operators limited time to establish themselves and meet aggressive owner performance expectations."

The study found several factors had caused the shift. They included the increasing separation between management and ownership in the sector, the dominance of large private equity firms and their aggressive asset management skills, and the spread of diverse portfolios and Real Estate Investment Trusts.

Adler warned: "While operators have chosen an opportune time to free up capital, they may find that the new ownership regime is more demanding than they have anticipated."

By Emily Manson

Get your copy of Caterer and Hotelkeeper every week - click here to subscribe and save 25%.

Sudoku Join the craze and play Sudoku online!
The Caterer Breakfast Briefing Email

Start the working day with The Caterer’s free breakfast briefing email

Sign Up and manage your preferences below

Check mark icon
Thank you

You have successfully signed up for the Caterer Breakfast Briefing Email and will hear from us soon!

Jacobs Media Group is honoured to be the recipient of the 2020 Queen's Award for Enterprise.

The highest official awards for UK businesses since being established by royal warrant in 1965. Read more.

close

Ad Blocker detected

We have noticed you are using an adblocker and – although we support freedom of choice – we would like to ask you to enable ads on our site. They are an important revenue source which supports free access of our website's content, especially during the COVID-19 crisis.

trade tracker pixel tracking