Some of the biggest names in private equity firms, hedge funds, and alternative asset management are chasing investments in short-term rentals and vacation rentals as new assets to diversify their portfolios.
Veteran, well-capitalized investors such as Blackstone Group, Davidson Kempner Capital Management, and Harrison Street would like to develop exposure to alternative hospitality lodging, according to people familiar with their research.
While commercial real estate firms have done deals involving short-term rentals for years, traditional institutional investors haven’t.
Institutional investors are working to create funds that invest in debt backed by properties managed as short-term rentals, vacation rentals, or related lodging.
The next step will be to build instruments that echo real estate investment trusts (REITs) specializing in short-term rentals and vacation rentals. But establishing a fund could take a year or two.
Two insiders said that hospitality REITs are themselves said to be looking at the short-term sector as a complementary asset class.
Source: Skift
