Despite the global pandemic, the latest Cavendish Maxwell report reveals opportunities for investors as industry gradually recovers.
Investors looking to cash in on the coronavirus pandemic are being urged to bide their time and potentially pick-up a bargain in the UAE’s hospitality industry, according to the latest report from Cavendish Maxwell.
Despite the industry being arguably one of the hardest hit by the lockdown measures and travel restrictions, introduced to curb the spread of the virus, the ‘Covid-19 impact on hotel valuation’ report revealed that opportunities exist in what was described as “material uncertainty”.
Daniel Harrison, Associate Partner, Specialist Commercial Property Valuation, said: “We expect potential investors to take a longer-term view on hospitality assets. Once hotel performance begins to stabilise and assets are placed onto the market, buyers with higher levels of liquidity will be in a position to acquire assets at prices below both replacement cost and recent norms. Irrespective of the downward trends associated with market performance, an opportunity for high returns will be created.”
