Hotels present a 5-star investment opportunity

As we (slowly) exit from COVID-19, the world is eagerly trying to uncover what the 'new normal' will look like. Is working from home destined to stay? Will we all live in the metaverse? And when will we finally stop wearing masks on public transport?

One thing that won't be changing anytime soon is the human thirst for travel - judging by queues at airports and passport offices, it looks like we're all making up for lost time. 

A key beneficiary of this theme is the hotel sector, which is the speciality of the recently launched Elanor Hotel Accommodation Fund. The fund's managers are excited to see a bounceback as travellers re-embrace their freedom. 

"We can see in our own data that occupancy really is recovering - in April we hit 60%... We are on the trajectory to get back to pre-pandemic levels, where the portfolio's occupancy was over 70%. - Blake McNaughton, Executive Director at Elanor

But the real benefit is being seen in room rates, with dynamic pricing offering maximum value extraction and inflation protection:

"We watch the rate daily, as well as the market and our competitor set. We drive this rate and continue to see continued growth in rates across the portfolio." - Marianne Ossovani, Head of Hotels, Tourism & Leisure at Elanor

"Being able to control that rate on a daily basis (versus the long-term lease of a commercial building)...provides a great hedge against inflation"

In this video Blake and Marianne explore the recovery of the hotel sector, why it is a compelling investment right now and how Elanor are extracting new value from these investments. 

Want to know more about the Elanor Hotel Accommodation Fund

The Elanor Hotel Accommodation Fund has been designed to provide investors with strong income and capital growth from a diversified portfolio of high investment quality hotel accommodation assets. Please contact Elanor to learn more (details attached).