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Private Equity Real Estate Fundraising Aimed at Hospitality Properties – September 2012

by Leopold Peavy

  • 25 Sep 2012
  • RE

Global real estate investments have been some of the hardest hit during the economic downturn in the past several years. Preqin Investor Network currently tracks data for 506 private equity real estate funds seeking to raise capital. Fifty-seven of these real estate funds are specifically targeting hotel, resort, and/or hospitality-based properties as part of their acquisition strategy.

Of these real estate funds, 32 have already held at least one interim close.  Nineteen of these real estate funds are primarily focused on acquiring hospitality properties in the US market, five funds are predominantly targeting the European region, and eight have a main focus on Asia and Rest of World. The sizes of these real estate funds encompass a large differentiation of capital sought, from the Redwoods Capital Special Situation Fund-I, seeking to raise approximately $36mn, to Blackstone Group’s Blackstone Real Estate Partners VII fund, which is targeting $13bn.  

Preqin Investor Network data shows that of the real estate funds seeking to acquire hospitality-focused properties, 13 of these funds solely have an opportunistic strategy. Seven private real estate funds are solely using a value-added strategy, and four are real estate funds of funds. Most of the direct vehicles, 22, have a multi-strategy focus.

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