Pro-invest Group Sees Operating Expertise as Key to Real

Investment manager Pro-invest Group says achieving returns in real estate over the next decade will depend as much on operating expertise as on the properties themselves. The firm's leaders argue that institutional capital is increasingly backing integrated platforms that combine development, investment, and management, particularly in accommodation sectors.

According to the firm, familiar pressures like population growth and affordability strain are reshaping urban living. Pro-invest Group distinguishes between traditional build-to-rent and its concept of 'urban accommodation': hospitality-backed, flexible stays focused on guest experience and operational discipline.

Capital Chases Platforms

Pro-invest Group states that investors are now drawn to operating platforms behind assets, not only the individual properties. This shift favors vertically integrated groups. The firm's own fundraising illustrates this trend. Its first fund centered on a national roll-out of Holiday Inn Express hotels. A second fund, the Australian Hospitality Opportunity Fund II, closed at A$300 million in October 2020, adding the voco brand and backing from the Clean Energy Finance Corporation.

Its portfolio includes more than 30 hotels, flex-living, build-to-rent, and commercial properties across roughly 15 markets in Australia, Europe, and the Middle East. The firm highlights its operational record with Holiday Inn Express, voco, Hotel Indigo, and Kimpton brands in cities like Sydney and Auckland. It also points to its 2025 GRESB sustainability scores.

Coogee Sands Proof Point

The group identifies the Coogee Sands Hotel & Apartments on Sydney's Coogee Beach as the first asset built around its urban accommodation strategy. The project involves the adaptive reuse of an existing building. Pro-invest acquired the property with MEC Global Partners Asia and is raising capital for an ANZ Urban Accommodation fund based on this model.

The property is being converted into 80 design-led studios. Guest bookings are due to open in the third quarter of 2026, with the property expected to open in the fourth quarter. "The opportunity is not simply to offer people a place to stay," Schaffer said. "It is to remove friction from the experience of staying."

Delivery Over Demand

Pro-invest Group sees the main constraint on accommodation investment returns in Australia as the ability to deliver projects on time and on budget, not a lack of demand. Planning delays, construction costs, and labour shortages are cited as barriers. The firm advocates for scalable delivery models, including adaptive reuse. If we only wait for perfect new supply, we will move too slowly, Schaffer stated.

The firm says affordability pressure is changing demand, pushing people toward flexibility, service, and professionally managed environments. Affordability is changing the question, Schaffer noted. Hospitality operators, with their experience in service consistency and revenue management, are seen as having an advantage in meeting this new demand.

Co-founder and chairman Ronald Stephen Barrott brings a hospitality perspective from decades in global real estate leadership. In hospitality, you learn very quickly that experience and performance are not separate conversations, Barrott said. The experience is part of the performance.

Owning Versus Operating

Looking ahead, Pro-invest Group expects the real estate focus to shift from asset classes to accommodation platforms. It sees urban accommodation as a flexible, hospitality-backed option for city dwellers seeking convenience. The next decade will not only reward those who own real estate, Schaffer concluded. It will reward those who know how to operate it. For the firm, this means expanding its urban accommodation platform, with Coogee Sands serving as the initial proof point for future acquisitions.