Bridge.Over Group is excited to announce that Aradhana Khowala, Managing Partner, was invited to speak at the Family Office Forum, held on 5 – 7 May, 2014 at the exclusive Nassauerhof Hotel in Wiesbaden Germany. Family Office Forum Wiesbaden is the exclusive annual meeting of German speaking Family Offices which brings together over 140 Family Offices under one roof. Aradhana’s presentation, Going Niche to Add Value to Real Estate Investments – A case for Luxury Hotels took place on Wednesday 7 May at 430 pm local time and can be summarised as follows:
Real estate investments are core to European markets accounting for over $20 trillion worth of investments. While the traditional arguments for including real estate in a multi-asset portfolio all still hold, the two largest components within the Commercial real estate space i.e. Offices and Retail have long term challenges that one needs to be aware of. This creates a growing need to flush out and focus on niche asset classes like hotels which are now increasingly becoming mainstream and offer a viable store of value. Investment in luxury hotels is a lifestyle investment comparable to investing in Art where a given transaction logic often transcends beyond a simple yield and valuation criteria.
Participants at the session walked away with real world, pragmatic advice on why luxury hotels make a good investment choice for Family Offices and how the stand out deals which add most value are often those that involve a vision for fundamentally altering the profile of the asset.