Dimond Hotel Consulting Group

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Overlooked Driver of Hotel Development

Guest Demand Not the Only Thing Driving Hotel Development

Capital that has historically targeted commercial real estate has “discovered” that hotels often offer higher yields than other genres in this sector. Hotel development and acquisitions has gotten the attention of Institutional investors. This is not only true in the U S but also in the UK. Retail development continues to slide as brands are closing stores to shore up earnings and deal with on-line shopping. While the determination of guest demand is still the major factor in hotel market studies it may not be the initial consideration by the investor especially new comers to hotel development.

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