These people are coming down here, bringing their skills and companies with them, so there will be growing numbers of subcontractors and general contractors here. Here’s what will rebalance that: I’m talking to people from New York, Pennsylvania and New Jersey who have little to do there because things are mostly not growing. You will be fortunate to find loyal subcontractors right now because they’re charging whatever they want and getting it. Infrastructure is getting strained, land prices are going crazy and construction prices are too high with labor shortages. They’re going to Florida, Tennessee, South Carolina and Texas but that immigration is a major challenge for every one of those markets. Folks who live and work there were already frustrated and COVID pushed them over the edge. These are places where there is structural economic, leadership, regulatory, and tax challenges. It has been that way in a lot of Southern cities, as the flight from what I’ll call unhealthy cities around the country continues to grow. What are the biggest challenges to developing in Raleigh-Durham? Our biggest challenge at the moment is that huge demand is overwhelming the short supply, which is squeezing lots of homebuyers and renters out of the market. Squeezed outįlight from ‘unhealthy’ cities is pushing demand and squeezing some buyers and renters out of the market Jim Anthony Archer Hotels also has two hotels in the Netherlands, the Hilton at Schiphol and the Renaissance Hotel in Amsterdam.Growth recipe: Raleigh-Durham. The hotels are located in Western European cities like London, Barcelona, Brussels, Paris and Berlin. For that purpose, Archer Hotel Capital was created to own the eleven hotels are now part of this newly-created joint venture. Together with GIC, APG has now acquired the interest that was owned by Host Hotels. Since 2006, APG had been invested with Host Hotels & Resorts and GIC in a company that owns eleven hotels in key European cities with an asset value in excess of €2 billion. Recently, it was also announced that APG, through Archer Hotel Capital, had increased its investment in a number of leading European hotels. CitizenM offers “affordable luxury for the people” and currently has 15 hotels in operation in cities like Amsterdam Rotterdam, London, Paris, Copenhagen, New York, and Taipei. In addition, the company has 25 hotels under development in top global cities, amongst others including Boston, Seattle, San Francisco, Los Angeles, Washington, Miami, Shanghai and Kuala Lumpur. In total, APG’s hotel investments amount to approximately €2 billion.ĬitizenM was started 11 years ago and continues to grow rapidly. APG has invested in the company from its inception. Next to the aforementioned CitizenM and Archer Hotel Capital, APG also has an investment in a Dutch-based company called The Student Hotel. Furthermore, APG holds private investments in hotels and hotel chains in Brazil and India, as well as investments in various publicly-listed hotel companies around the world. which equates to roughly 5% of the total real estate portfolio of €42 billion. Growing tourism and increase in business travel have led to higher occupancy numbers, and increasing room rates. As a result, the value of the hotels which are mostly located in central city locations has increased, leading to double digit returns from these investments. The investments in hotels have performed very well over the past years. Nowadays, modern travelers, including millennials, have different expectations when they are looking for accommodation.’ Travel is an important experience in their lives. ‘Modern travelers are looking for experiences and tend to put less value on material things. He also mentions the growing importance for people to have experiences. Think for instance of the increase in global tourism, in part driven by an emerging middle class around the world’ says Robert-Jan Foortse, head of European Property Investments. In total, CitizenM will have €750 million of additional equity available to invest.ĪPG invests in hotels for its pension fund clients because they demonstrate an attractive risk/return profile. In addition, GIC and founder Rattan Chadha (through KRC Capital) have also committed further equity to accelerate the growth of the company. At the same time, it was announced that GIC, Singapore’s sovereign wealth fund, has acquired a stake of 25% in CitizenM, valuing the company at approximately €2 billion. Today it was announced that APG has committed fresh capital to CitizenM to facilitate the further growth program of this highly successful hotel company.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |