Two influential institutional investors have said they will not be buying shares in Vector Hospitality. Sunday Telegraph

Cohen & Steers, the largest specialist property investor in the world, and Henderson Global Investors, have both indicated they will not buy into the £2bn hotel REIT - the biggest flotation ever attempted on the London Stock Exchange - because of concerns about investment returns and the management structure.

Patrick Sumner, Henderson’s head of property equities, said: 'We won’t be participating. It is down to the numbers. We just don’t think we would get the sort of returns we are looking for relative to other property investment at the moment.'

He added: 'We would far rather have exposure to the office sector in the UK through companies like British Land and Land Securities. This is an unproven sector and there is no precedent for pricing.'

Sources close to Cohen & Steers, the US investment house, said it was unlikely to invest, in part because of the new company’s complex and external management structure.