ESG has long been part of the narrative within the Nordics and it is only a matter of time before it impacts cap rates, say CapMan Real Estate’s Thomas Laakso and Simon Hultén.
Two years ago, international travel was brought to a halt as countries across the globe introduced restrictions to minimize the spread of covid-19. As a result, the hospitality industry suffered deep disruption; according to STR data, the European hotel market recorded an unprecedented revenue per available room (RevPAR) decline in 2020, down by 70 percent to approximately €24 due to covid. This was fueled by a drop of around 63 percent in occupancy to 27 percent, while ADR also fell by 18 percent to €92.
However, despite continuing disruptions, international travel is eventually expected to bounce back. This will in turn have a positive impact on hotels, argue CapMan Real Estate’s investment director Thomas Laakso and investment manager Simon Hultén.
“Hotel assets in general experience less pricing friction than other types of commercial property”
THOMAS LAAKSO
The full interview is available in the PERE 2022 Hospitality report and published in April 2022.
