Our Thoughts
Wed, 01/04/2020 - 12:00
· 2 min read

Bed Sectors Unite

During this period of uncertainty, it is reassuring to see the 'bed' sectors within the property industry unite, leading to an increase in investor confidence within this sector.

Hotels are being turned into hospitals, staff from hotels are finding opportunities in the healthcare sector and beds in student accommodation blocks and hotels are being used to house doctors, nurses and other key worker/NHS staff, as well as the homeless.

It is evident now, more than ever, how much cross over there is between these bed-focused property assets. When one operational market, currently the UK's care homes and hospitals, are at maximum capacity, other operational real estate, namely the hotel and student markets, are able to step in and offer their bed spaces. Whilst this hugely benefits the UK's healthcare system, it is also allowing hotel and student landlord's void costs to be minimised. Moreover, there is a crossover in some employment skills, and so we are witnessing care homes and hospitals, who are in desperate need of more staff, where appropriate, offering hospitality and student accommodation staff temporary jobs.

The lack of beds in the health and social care system has been highlighted by this experience and so we expect planners and the government to look more seriously at additional development into this sector in the future. In addition, BTR markets may also see a pick-up in demand, providing more flexibility as we head into economically challenging times.

Inevitably there will be distress over the forthcoming months, whilst operators adapt to the challenges they currently face. However, this crisis is showing how resilient the ‘beds’ sector is and how adaptable the modern, purpose built real estate can be, whether student, healthcare, hotel or residential BTR. We believe that ultimately, this should inspire confidence from investors as they recognise the benefits of having a portfolio with a diverse bed-focused asset base.

For further research on the bed sector, read our latest Senior Living 2020 Report

Bed Sectors Unite