Are Hotels a Hedge Against Inflation in the Modern Era?

Feb 23, 2022, 13:43 PM by Bram Gallagher
Inflation affects hotel returns through pricing, substitution effects and interest rates, however most hotels’ returns are not sensitive to low-to-moderate inflation. The inflation effect is only statistically significant in luxury hotels, which seem to benefit from inflation.

Hotel returns follow the real economy, and as CBRE EA expects that inflation peaked in Q4 2021, this simultaneous high level of inflation and GDP growth should mean significant returns in luxury hotels.

Therefore, luxury hotels emerge as the most likely candidate as a hedge for inflation.

Read EA's full Viewpoint below. 


Deconstructing CRE

239 posts

Last post : 06/24/2022

redirect pin user minus plus fax mobile-phone office-phone data envelope globe outlook retail close line-arrow-down solid-triangle-down facebook globe2 google hamburger line-arrow-left solid-triangle-left linkedin play-btn line-arrow-right solid-triangle-right search twitter line-arrow-up solid-triangle-up calendar globe-americas globe-apac globe-emea external-link music picture paper pictures play gallery download rss-feed vcard