Hotels a better investment bet than logistics: Pro-invest

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Hotel developer and investor Pro-invest expects to close out a $150 to $200m first raise for its third hotel fund, which will target existing assets.

Fund manager Pro-invest has tipped the hotel sector to outperform the booming logistics market over the coming years on the back of a resurgence in accommodation take-up, after securing up to $200 million from institutional investors for its latest hotel fund.

She said hospitality assets, on the other hand, still had “runway to get to the mature phase” after a resetting of hotel values during the pandemic.Pro-invest, which owns and manages a portfolio of over 4500 rooms spread across 22 mid-scale and lifestyle hotels in Australia and New Zealand, is targeting a 20 per cent annual internal rate of return for its third hotel fund, which will focus on acquiring existing hotels from “motivated sellers” and undertaking repositioning or rebranding programs.

Pro-invest is targeting a $500 million total raise for its third hotel fund, giving it the capacity to acquire between eight and 10 assets. It has also strengthened its hotel management platform, forming a joint venture with operator Next Story Group seeded with 1500 rooms across brands such as Sage, Voco, Sebel and Indigo.

 

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