Hotel slump lures buyout firms

Seattle

BUYOUT firms expect that bargains may emerge in hotel investments following the slump in US lodging stocks, suggesting a potential pick-up in deals after a slow start this year.

"Market volatility creates opportunities for longer-term, value-oriented investors like ourselves," said Tyler Henritze, co-head of US real estate acquisitions for Blackstone Group LP, which raised a record US$15.8 billion property fund last year.