The leisure and entertainment sector within real estate is a very niche segment. It is extremely specialized and very fragmented. Most owners and operators will specialize with a certain property type or sub-sector such as golf courses, amusement parks, sports complexes or resorts. Often times there is a hotel component that may accompany these types of properties that is either managed by the owner of the property or most likely managed by a third party operator. Some of the most well-known companies operating in this segment are Starwood Hotels & Resorts as well as Hilton Hotels Corporation. REITs are also very active in this sector. Opportunities within this sector encompass the typical job spectrum from property managers, portfolio managers, acquisitions, dispositions, financing, and development, but any job in leisure and entertainment will require a unique knowledge of the very unique assets within this sector.
Information on this page provided courtesy of Cornell University Baker Program in Real Estate
This sector is dependent on discretionary spending and, much like the hotel sector, has been hard hit by the current economic downturn. Also like the hotel sector, the entertainment and leisure sector tends to be a leading indicator and, as seen in the NAREIT returns comparison, the lodging/resort sector tends to show larger, over-exaggerated gains and losses ahead of the gains and losses of the overall index. As such, until the home prices begin to stabilize and jobs begin to come back this sector will continue to struggle. However, as in the past, as the recovery begins this sector will show gains ahead of the overall market, which can already be seen in the 2011 data from NAREIT.