FP Show 2019

FP Show 2019: Lenders shouldn't 'wade in' to hotel, PBSA and serviced apartment space without understanding asset class



There are a number of different opportunities offered by the construction and funding of PBSA schemes, hotels and serviced apartments, according to a panel discussion at the Finance Professional Show which took place yesterday (6th November).

At the event, developers, lenders and service providers weighed in on the risks and rewards associated with developing property in these growing sectors. 

The panel featured Vedrana Bilanovic Riley, CEO at Ciel Capital; Emma Burke, deal origination at Maslow Capital; Anthony Laville, founder and CEO at Volume.Property; Ranjeev Kumar, partner at Watson Farley & Williams; Piers Brown, CEO at International Hospitality Media; Sky Mapson, deal origination at Maslow Capital; and Tarek Jumah, associate director at Future Generation.

Ranjeev explained that while PBSAs, hotels and serviced apartments were areas where many were seeing their best yields, such market segments came with different challenges. 

“Each sector has its own nuances,” he warned.

Many of the trends in the sector can be put down to cultural shifts and changes in the way people live, travel and study. 

Although Ranjeev stated that hotels and PBSA represented better yields in the sector, Emma added a note of caution to lenders looking to move into the space. 

“You don’t just decide that because this is the space everyone is now operating in and interested in that this is where all the investment money sits and [you’ll] now wade in and start lending in the sector without ultimately understanding what each individual asset class offers.”   

Pictured above (l-r): Piers Brown, Anthony Laville, Sky Mapson, Emma Burke, Tarek Jumah, Vedrana Bilanovic, Ranjeev Kumar.


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