News for the Hospitality Executive
Jan. 30, 2012 – After two strong rebound years, the volume of hotel transactions in New York reached an all-time record high in 2011. Eighteen transactions, comprising nearly $3.5 billion in assets traded, representing a 150 percent increase over 2010 volume, according to preliminary numbers from Jones Lang LaSalle Hotels’ Hotel Intelligence New York report. Approximately 50 percent of the city’s acquisition volume was driven by real estate investment trusts (REITs) in 2011. The firm’s hotel transactions experts predict 2012 will bring much the same as New York is expected to remain the most active hotel transaction market in the United States.
Key metrics contributing to New York’s place as the top ranking global market for hotel transactions in 2011 and 2012 include:
During 2011, Manhattan was the most liquid city for hotel transactions across the globe, and grabbed the attention of investors due to its strong track record of resilience. London, Singapore, San Diego and Paris rounded out the remaining top five markets in terms of hotel transaction volume in 2011, each achieving more than $1 billion in transactions.
Approximately a dozen single asset hotel transactions are expected to close in New York in 2012.
“New York transaction activity in 2011 was driven by the perfect combination of strong operating fundamentals, quality product being brought to market and unprecedented REIT appetite,” said Arthur Adler, Managing Director and Americas CEO of Jones Lang LaSalle Hotels. “During 2012, REITs have been less acquisitive since their share prices declined in mid-2011, but are continuing to look for opportunities to upgrade their portfolios.”
The profile of hotel ownership in New York continues to evolve through economic cycles. “REITs now own approximately 20 percent of the room stock in New York and as such are among the top three hotel owners in the City, along with owner/operators and private equity funds,” added Amelia Lim, Executive Vice President for Jones Lang LaSalle Hotels and leader of the firm’s Northeastern U.S. advisory practice.
According to Jones Lang LaSalle Hotels’ report, New York is also likely to garner international interest from high profile Middle Eastern buyers and select Asian investors.
“During 2011, Jones Lang LaSalle Hotels advised on nearly $400 million of transactions in New York including the landmark asset sales of the Paramount New York, and the Morgans and Royalton hotels,” said Jeffrey Davis, Managing Director of Jones Lang LaSalle Hotels and head of the New York Investment Sales team. “With fewer assets expected to come to market our clients should be able to tap into strong interest from private equity funds and off-shore investors, while the REITs could also play depending on how their share prices fare.”
New York’s hotel room revenue per available room (RevPAR) increased by 7.4 percent through year-to-date November 2011, driven by growth in average daily room rate. Notwithstanding supply increases, Manhattan’s lodging fundamentals are expected to show ongoing strong growth in 2012. “New York City has demonstrated the ability to absorb new supply as exhibited by its historically high occupancy rates. The City has rebounded from the recession, and the market will remain high on investors’ list of cities to target for investment in 2012,” said Adler.
About Jones Lang LaSalle Hotels
Jones Lang LaSalle Hotels, the first and leading global hotel investment services firm, is uniquely positioned to provide the depth and breadth of advice required by hotel investor and operator clients, through a robust and integrated local network. In 2010, Jones Lang LaSalle Hotels provided sale, purchase and financing advice on $4.1 billion worth of transactions globally. In addition, advisory and valuation services were provided on over 1,000 assignments. The global team comprises over 225 hotel specialists, operating from 39 offices in 20 countries. The firm's advice is supported by a dedicated global research team, which produced 70 publications in 2010 in addition to client research. Jones Lang LaSalle Hotels' services span the hospitality spectrum; from luxury single assets and large portfolios to select service and budget hotels, resorts and pubs. Services include investment sales, mergers and acquisitions, capital raising, valuation and appraisal, asset management, strategic planning, operator selection, management contract negotiation, consulting, industry research and project development services. Jones Lang LaSalle Hotels' clients have access to the resources of its parent company, Jones Lang LaSalle (NYSE: JLL). www.joneslanglasallehotels.com
+1 312 288 2797
Hotel Transaction Volume Forecasted to Hold Steady in 2012 with
Worldwide Levels to Once Again Reach $30 billion According to Jones
Lang LaSalle Hotels Annual Hotel Investment Outlook 2012 Report /
Wynne-Smith to Become CEO for Jones Lang LaSalle Hotels While Arthur de
Haast Steps Up to Chairman / December 2011
Hotel Investors’ Appetite to Buy Rises to 18-month High, According to
Jones Lang LaSalle Hotels Survey; Top five cities for acquisitions
include Stockholm, Copenhagen, Chicago, Milan and San Francisco /
Buying Audience Emerges as REITs Pull Back on the Throttle for Hotel
Assets; Jones Lang LaSalle Hotels says sellers' window is still open as
growth in hotel room rates are expected to outpace inflation /
Lang LaSalle Hotels Study, Lodging Industry in Numbers – Brazil 2011,
Reveals Double-Digit Performance Growth for Brazilian Hotels for Second
Consecutive Year / August 2011
Lang LaSalle Hotels Forecasts Global Hotel Investment Volumes to Reach
$34.8 billion in 2011; The Americas Registered a 187% Year-on-Year
Upsurge with Transactions Totalling $7.4 billion / July 2011
Hotel Transaction Volume Reaches $4.9 Billion Through May, Triple the
Volume for Same Period Last Year Reports Jones Lang LaSalle Hotels;
Investors' 'buy' intentions are at six-year high / June 2011
Lang LaSalle Hotels Reports $24.3 billion in Global Hotel Sales During
2010 as Investors Get Back in the Game; Expects Deal Volume to Rise up
Another 15-25% Across the Globe in 2011 / January 2011
the Financial Challenges of 2009, Jones Lang LaSalle Hotels Forecasts a
30 to 40 Percent Increase in Global Hotel Deals; Worldwide Transaction
Levels Could Reach $28 to $30 billion in 2011 / November 2010
Lang LaSalle Hotels Arranges the Sale of the Laguna Cliffs Marriott
Resort & Spa / October 2007
|Jones Lang LaSalle Hotels Select Service Division Closes Radisson Fort Worth North Hotel / January 2007|