Ambitious roll out plans, many obstacles

3rd hospitalityInside INVESTMENT BAROMETER: Need for communication - Public Version

Augsburg/Hamburg (December 5, 2014). Brand hotels will happily announce a quick-paced expansion, but in reality, they rarely implement these plans as quickly. Alongside the insufficient availability of properties and matters relating to financing, another particular reason for this is the "false expectations on the investors' as well as the operators' side". At least 40% of those asked by the 3rd hospitalityInside INVESTMENTS BAROMETER in cooperation with Union Investment think this.

"The answers demonstrate the immense need for communication between the operators and hotel investors and once again underline the peculiarities of the hotel special segment," says Andreas Loecher, Hotel Investment Director with Union Investment Real Estate GmbH, Hamburg.

Nevertheless, this does not detract from the brilliant mood among investors as well as hotel developers. The conversations and transactions during the EXPO REAL in Munich had already anticipated the findings: The mood within the hotel real estate market is extremely good. This has been highlighted by the "Herbst-Umfrage" (Fall Survey) of the hospitalityInside INVESTMENT BAROMETER – initiated by the online trade magazine, hospitalityInside.com, in cooperation with Union Investment.
In comparison to the spring, the total index rose by 59 points to 3,878 (of 5,000 in total) and is an increase of 1.54 percent. The current mood is being driven by the project development and this picture could not be dampened by a certain scepticism with regard to business operations.

Along with this, the framework conditions for quick growth by the brand hotels are good to very good. The greatest opportunities for winning while implementing an expansion are granted by the survey to the budget hotels by a wide margin (approximately 44% of the respondents) and are followed by Serviced Apartments (25.3%). With this, the two still-young to special real estate types have clearly reaped an early praise based on their solid development in the past and will presumably also remain as the most popular segments within the hotel market next year.

"The distribution of the recurring index questions and the always new trend questions within the INVESTMENT BAROMETER has proven its worth. The trend questions highlight the current individual aspects with repeatedly interesting and sometimes also astonishing results," hospitalityInside Editor in Chief, Maria Puetz-Willems, summarises. The "Live Terminal" at the "World of Hospitality" joint stand at the Expo Real for participation in the survey has also successfully passed its initial trial and will become a firm fixture there.

Extracts of the new results are also published on the Union Investment website (www.union-investment.de/realestate). In today's issue of the hospitalityInside online magazine, subscribers will find an extended version of the current survey.

Those who want to obtain the entire analysis of the survey in future should register for the barometer and participate via this link. Registration and participation are free of charge.

The next survey will take place in March 2015. Please, recommend the participation to your esteemed colleagues and business partners. At our joint stand "World of Hospitality" at ITB Berlin in March 2015, you will have the chance to join the next survey "live", at a specially designed terminal. Visit us in Hall 9/108.

In the attached PDF below, you will find all information about the publically accessible survey at a glance.

INDEX: TOTAL RESULTS Autumn 2014

	hospitalityInside Investment BAROMETER Herbst 2014_Public Version