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CBRE: more investors want distressed hotel assets

As widespread vaccinations aid the economic recovery and investors show increased appetite for risk, a new survey from CBRE revealed a record 11% of investors are primarily seeking acquisitions of distressed hotel assets.

According to a new Americas Investors Intention Survey 2021 (download here), now in its seventh year, large investors (those with assets under management of more than US$50 billion) for the first time are more enthusiastic about secondary markets than primary markets across all asset types. Sun Belt markets are the most appealing. Austin is the most favored market, followed by Dallas.

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The CBRE report showed investors’ risk tolerance is growing as they aim for higher returns. Almost 30% of survey respondents are targeting opportunistic and distressed assets in 2021. This is the highest level in the survey’s history and compares with 16% in 2020.

Pricing will be aggressive for logistics and multifamily assets, while investors expect price discounts for most other asset types, the survey revealed.

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