The hospitality industry in the USA saw major disruptions in 2020 due to the COVID-19 pandemic. However, some key hospitality investment companies demonstrated resilience and continued making strategic investments to drive growth. As the sector recovers, these companies are well-positioned to capitalize on new opportunities.
Blackstone remained the top hospitality investment firm despite pandemic challenges
Blackstone Group, the world’s largest alternative investment firm, continued its leading position in hospitality investment in 2020. It closed a $6 billion fund focused on buying hotels and resorts despite declines in travel and hotel occupancy. Blackstone is taking a long-term view and betting on a rebound.
KKR expanded its hospitality portfolio through new deals
Global investment firm KKR acquired a portfolio of hotels across the Sunbelt regions in 2020 to expand its hospitality holdings. It also recapitalized Great Wolf Resorts, positioning the indoor water park resort chain for growth as family travel rebounds post-pandemic.
Highgate maintained aggressive growth amidst uncertainty
Hospitality investment firm Highgate continued its rapid expansion in 2020, closing deals worth about $1 billion. It grew its portfolio through acquisitions of stranded hotels and securing management contracts despite broader industry distress.
Sunstone Hotel Investors focused on liquidity and balance sheet strength
Sunstone Hotel Investors, a lodging REIT, shored up its balance sheet in 2020 to prepare for resumption of growth. Through equity issuances and debt raises, it now has over $1 billion in liquidity to pursue strategic investments.
Despite pandemic headwinds, major hospitality investment companies like Blackstone, KKR and Highgate maintained their growth trajectories in 2020 through new acquisitions and portfolio expansion. Their continued investments position them strongly for the sector rebound.