Blackstone Eyes Hospitality-Linked Real Estate As Travel Spikes
- Blackstone President Jon Gray wants to increase exposure to hospitality-linked real estate.
- Blackstone "de-emphasized" properties related to leisure. It's currently 7% of the firm's portfolio.
- Vaccinated passengers are returning to the skies after last year's shelter-in-place orders.
Blackstone's President and Chief Operating Officer Jonathan Gray is confident folks will return to the skies, particularly vacationers and leisure enthusiasts.
So much so, the private-equity firm is expected to increase exposure to hotels, and ancillary properties linked to hospitality like restaurants and conference venues, Gray said during Blackstone's second quarter earnings call on Thursday.
"Hospitality in real estate used to be a very large portion. We de-emphasized that. But I think that number will go up," Gray said.
With US airlines reporting increased forward-booking curves, and states easing lockdown restrictions, travel is up as vaccinated passengers crave holidays after months of staying put.
Real estate, particularly rental properties, provide a hedge against inflation for investors eyeing long-term assets that can provide stable returns while interest rates remain low.
For Blackstone, hospitality-linked real estate is just 7% of its portfolio, …
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