With demand for quality real estate far exceeding supply in the traditional sectors, United States real estate managers are looking to hotels as investment alternatives.
The increase popularity in hotel investments has prompted Principal Real Estate Investors, the fourth largest institutional real estate manager in the US to launch into the sector.
PREI’s chief executive Pat Halter said launch into hotels is a significant development for the company.
"With demand for quality real estate far exceeding supply in the traditional sectors, we’re seeing the need to find new investment alternatives for our clients. The hotel sector has been offering investors good current yields and strong long term internal rates of return, and we’re excited about the ability to offer our clients a whole new array of attractive investments,” he added.
To spearhead its entry into the hotel investment sector, PREI has hired hotel investment veteran James E. Fitzgerald, who joins as managing director, hotel investments.
Fitzgerald will develop and oversee all of the company’s equity investment and debt financing activities in the hotel sector.
Fitzgerald comes to PREI from REH Capital Partners, a national investment and advisory services firm that specializes in the real estate and hospitality sectors, which he co-founded and where he served as executive vice president and chief investment officer. Fitzgerald has over 20 years experience in the hotel investment sector, including roles in hospitality consulting, corporate finance, and business development with KPMG, AIG, Omni Hotels and Marriott Corporation. Fitzgerald earned a BS in hotel administration from Cornell University.
"James has a wealth of experience in hotel investing and we’re confident that with his leadership and his contacts, we will be well positioned to meet our clients’ objectives,” Halter said.
By Nelson Yap
