News for the Hospitality Executive |
JUNE 6, 2011 – Jones Lang LaSalle Hotels
today released updated metrics on the U.S. hotel market, reporting that
volume reached $4.9 billion through May—triple the volume recorded
during the first five months of 2010. This is according to Jones Lang
LaSalle Hotels’ proprietary database, which tracks asset transactions
$10 million and above, and excludes note sales, recapitalizations and
foreclosures.
“We are seeing a striking turnaround in the
market for hotel transactions. Building on improving lodging
fundamentals which gained strength last year, the volume of capital
flowing to hotel real estate has ignited as acquisitive investors
re-entered the market in full force, leading to a 170 percent increase
in transaction levels,” said Arthur Adler, managing director and
CEO-Americas for Jones Lang LaSalle Hotels.
Single-asset hotel transactions dominated
the landscape, accounting for 85 percent of deal volume. High-quality
assets with in-place cash flow located in key urban markets have made
up the bulk of the hotel trades tracked thus far in 2011.
Real estate investment trusts (REITs) continue to make headlines and accounted for a lofty 61 percent of single-asset transaction volume, followed by private equity investors, the second most acquisitive group, representing 25 percent of purchases by volume. “Values are improving across all metrics,”
said Robert Webster, a managing director for Jones Lang LaSalle Hotels.
“The average single-asset transaction size jumped to $84 million during
the first five months of 2011, doubling on the prior-year period. The
average price per key of single assets that transacted during the
period increased 27 percent to top $234,000.”
Jones Lang LaSalle Hotels’ Hotel Investor
Sentiment Survey, also released today, reveals that investors’ ‘buy’
sentiment reached a six-year high in the U.S., with 59 percent of
respondents indicating that their primary investment intention over the
next six months is to acquire assets. The firm’s survey also highlights
that of the 92 lodging markets tracked, the ten cities garnering the
highest interest for acquisitions are all located in the Americas. The
survey is directed toward the world’s 6,000+ leading hotel investors
and owners.
“Based on the pace recorded thus far in
2011, we are confident that transaction volume forecast of $13 billion
for full-year 2011 will be met or exceeded as momentum in the market
further accelerates,” said Adler.
|
Contact: Paige Steers 312 228 2797 [email protected] www.joneslanglasallehotels.com |
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