Cases in point were his three panelists-Coley Brenan, principal at KSL Capital Partners; Cody Bradshaw, senior VP, head of European hotels at Starwood Capital Group; and Fabio Longo, executive VP at Sankaty Advisors, an affiliate of Bain Capital-who collectively have assets under management, according to Finney, of approximately $50 billion.
And in Europe, where it remains very fragmented, there are distress, lots of platforms, some starved of capital, and the opportunity to insert ourselves and create value," Bradshaw
pointed to the changing landscape in the continent that requires going up the risk curve.
"There is lots of evolution, (and) the one to watch is the rise of franchises, while leases are preferred by smaller owner-operators, often which are brands never able to create multi-national platforms.
Another evolution is asset management helping drive value," Bradshaw
added, who remarked the U.S. still regards Europe as though it were one large sale.
"The majority of those sellers will be private equity, as will be the owners, and traditionally we do not like to buy from one another," Bradshaw
Its supply is constrained, and interest rates are low," Bradshaw
U.S. investors still see tremendous potential in fragmented Europe, an optimism driven by the opportunity for yield coming off the debt market and continuing price attractiveness, even in the U.K.
"The challenge has been a lack of product, but it remains an interesting environment," Bradshaw
Hotels are 30% of what ( Starwood Capital