The report also says that hotels can provide a barometer of office markets' performance, as they tend to react more quickly to good or bad economic and political events. It concludes that while the sector represents an increased investment risk, there is the potential to realise "premium returns", already being won by canny investors.
According to Ian Chappell, senior vice president Jones Lang Lasalle Hotels, hotels are rarely a stabilised asset, "being either on the way up or down". However, the sector is not as big a gamble as it has been in the past. Much of the risk previously associated with hotel groups has been reduced owing to sale and leaseback deals across Europe.
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