ATLANTA — Real estate titan Blackstone hasn ’ t acquired a hotel in the last two years . And it ’ s not for lack of conviction , said Scott Trebilco , senior managing director of Blackstone , during a panel session at the Hunter Hotel Investment Conference . It turns out , despite its |
reputation as a guzzler of real estate , even it isn ’ t immune to the disruption in capital markets illustrated most by higher interest rates that have increased the cost of capital .
The company , which famously acquired Hilton back in 2007 before winding out of its investment in 2018 with $ 14
|
billion in profit , has looked at hundreds of deals over the past couple of years , Trebilco said , but nothing panned out .
“ The cost of capital is a challenge . The cost of debt has elevated and has constrained leverage ,” he said . Companies like Blackstone typically take on high debt loads to
|
pull deals off , but when debt becomes more expensive , it makes it harder for them to pull the trigger . He added that unlevered IRRs have increased . Blackstone in recent years has shifted its dollars to assets outside hotels , including logistics , data warehouses and student housing . It ’ s a good |
24 hotelsmag . com May / June 2024 |