Hotel Online
News for the Hospitality Executive


 advertisement



​ Mid-Year U.S. Hotel Transaction Volume Up 50 % to $8.0 Billion in 2013
According to Jones Lang LaSalle

Five Secondary Cities Claim Top Spots for Hotel Investment


NEW YORK, JUNE 5, 2013 — At the NYU International Hospitality Industry Investment Conference, Jones Lang LaSalle’s Hotels & Hospitality Group today announced that U.S. hotel transaction volume for 2013 has already reached $8.0 billion, a 50 percent increase compared to the same period in 2012. Hotel deals for 2013 reflect a nearly fifty-fifty split between $4.3 billion single asset transactions and $3.7 billion portfolio sales. Resort investments have nearly doubled since 2012 and today account for 25 percent of the total transaction volume. JLL expects investors to remain particularly keen on the resort segment given the constrained new resort development pipeline, which will underpin the performance of existing resorts.

“Hotel transactions thus far in 2013 have outpaced levels recorded during the same prior-year period, driven partly by two mega portfolio sales in excess of $1 billion each,” said Art Adler , Americas CEO of Jones Lang LaSalle’s Hotels & Hospitality Group. “We anticipate that by year end, U.S. transaction volume will reach $17.5 billion, marking a 10 percent increase over 2012.”

Secondary markets witnessed deal volume spike
Contrary to 2011 and 2012 when international gateway markets dominated deal volumes, the first half of 2013 witnessed a significant shift in the location of activity. While New York, San Diego, Washington, D.C., Miami and San Francisco maintained their positions as “most active” for hotel trades, secondary and previously unranked markets dominated the other six spots on the list of U.S. top 10 markets for hotel investment.

“Due to the increased amount of product available for purchase in secondary markets, these cities were extremely active with three new contenders among the most liquid markets: Atlanta, New Orleans and Houston. These large secondary markets will remain targets for investors, as their RevPAR growth should outpace national averages,” said Adler. “For the balance of 2013, we also expect the traditional gateway markets, which have been a bit quieter in terms of deal closings, to experience more robust transaction levels.”

Following New York as a top market for hotel investment Atlanta, New Orleans and Houston have emerged as core locations: 
  • Atlanta ranks No. 2: Making its debut on the top 10 list, foreign capital drove Atlanta’s deal volume, which totaled $400 million during the first five months of 2013. The sale of the Marriott Marquis, a transaction arranged by Jones Lang LaSalle, represented approximately 75 percent of the deal volume in the market. The city, consistently ranking among the top five convention center markets in the country, witnessed nearly 10 percent RevPAR growth year-to-date April 2013.
  • New Orleans ranks No. 3: REITs accounted for 80 percent of the $345 million in purchases during the first five months of 2013. The market remains among the strongest-performing in the United States, with 10 percent RevPAR growth in the first five months of the year over the same period last year. 
  • Houston ranks No. 9: Houston’s hotel market posted the third-highest national growth rate among the country’s largest lodging markets in 2012 and the double-digit pace is continuing in 2013. The healthy performance of the market kept investors’ interest as hotel trades totaled $155 million year-to-date.
Private equity buyers continue domination
Given the increased amount of product on the market in secondary cities, the most active investor groups thus far have been private equity funds, which accounted for 35 percent of acquisitions, while public REITs and sovereign wealth funds each accounted for 21 percent. Private equity funds flush with cash funded the bulk of the purchases priced in excess of $100 million, whereas REITs have dominated the $60 to $100 million space in gateway markets and select secondary markets, such as New Orleans.

“REITs have accounted for fewer big-ticket purchases so far this year, but we expect this trend to shift during the second half of 2013 as an increased amount of large high quality assets are marketed for sale in core markets. Private equity funds are expected to continue to focus on assets which have upside potential, along with portfolios of select service hotels,” concluded Adler.

Hear more details on the market and meet the JLL team appearing at the NYU International Hospitality Industry Investment Conference:
  • June 3rd at 3:45 p.m.: Managing Director Matt Comfort will be discussing “Distressed or Maturing Debt: The Differences in Dealing with Special Servicers and Financial Institutions” 
  • June 4th at 8:30 a.m.: Americas CEO Art Adler will moderate a panel on “M&A In the Lodging Sector: Who’s Buying Hotels?”
To schedule an interview with any of our team members, e-mail Katie.Sershon@am.jll.com.

Jones Lang LaSalle’s Hotels & Hospitality Group serves as the hospitality industry’s global leader in real estate services for luxury, upscale, select service and budget hotels; timeshare and fractional ownership properties; convention centers; mixed-use developments and other hospitality properties. The firm’s more than 265 dedicated hotel and hospitality experts partner with investors and owner/operators around the globe to support and shape investment strategies that deliver maximum value throughout the entire lifecycle of an asset. In the last five years, the team completed more transactions than any other hotels and hospitality real estate advisor in the world totaling nearly US $25 billion, while also completing approximately 4,000 advisory, valuation and asset management assignments. The group’s hotels and hospitality specialists provide independent and expert advice to clients, backed by industry-leading research.

For more news, videos and research from Jones Lang LaSalle’s Hotels & Hospitality Group, please visit: www.jll.com/hospitality or download the Hotels & Hospitality Group’s app from the App Store.

About Jones Lang LaSalle
Jones Lang LaSalle (NYSE:JLL) is a professional services and investment management firm offering specialized real estate services to clients seeking increased value by owning, occupying and investing in real estate. With annual revenue of $3.9 billion, Jones Lang LaSalle operates in 70 countries from more than 1,000 locations worldwide. On behalf of its clients, the firm provides management and real estate outsourcing services to a property portfolio of 2.6 billion square feet and completed $63 billion in sales, acquisitions and finance transactions in 2012. Its investment management business, LaSalle Investment Management, has $47.7 billion of real estate assets under management. For further information, visit www.jll.com.

.
Contact:

Katie Sershon
+1 312 228 3127
Katie.Sershon@am.jll.com

Jessica Martin
+1 312 228 2983
Jessica.Martin@am.jll.com


.
Receive Your Hospitality Industry Headlines via Email for Free! Subscribe Here  

To Learn More About Your News Being Published on Hotel-Online Inquire Here

Also See: Investors on the Lookout for Hotel Opportunities in Asia’s Emerging Markets; Jones Lang LaSalle Reports Hotel Transactions in Asia up 190% in Q1 2013 Over Q1 2012 / April 2013

Despite Competitive Hotel Environment Prague Witnesses a 6.3% Growth in RevPAR in 2012; According to Jones Lang LaSalle’s Prague Hotel Intelligence Report / February 2013

Gurgaon Emerges as a RevPAR Leader in India's Luxury Hotel Segment; 2012 RevPar Posted 22% and 27% Higher than the Five Star Segments in Mumbai and Bangalore Respectively / February 2013

Europe, Middle East and Africa (EMEA) Hotel Investment Volumes Total $11 Billion in 2012; Similar Volume Forecast for 2013 According to Jones Lang LaSalle Hotels & Hospitality Group / January 2013

Interest from Foreign Capital Drives London Hotel Prices to Pre-Crisis Level; According to Jones Lang LaSalle’s UK Hotel Intelligence Report / January 2013

Americas Hotel Transaction Volume to Eclipse 2012 at $18.5 Billion in 2013; According to Initial Results from Jones Lang LaSalle's Annual Hotel Investment Outlook Report / January 2013

Worldwide Hotel Transaction Volume to Hit $32 Billion in 2013; According to Initial Results from Jones Lang LaSalle's Annual Hotel Investment Outlook Report / January 2013

Jones Lang LaSalle Hotels Latest European Hotel Investor Sentiment Survey Indicates 40% of Respondents Intend to Buy Over Next Six Months / December 2012

Appetite for Quality Hotel Assets in Stockholm Continues into 2013 According to Jones Lang LaSalle's Hotel Intelligence Report Sweden / December 2012

Hungarian Hotel Market is Holding its Own Despite the Country's Economic and Financial Challenges According to Jones Lang LaSalle Hotels' Hotel Intelligence Report / September 2012

Key European Hotel Markets Witness Positive Growth in Trading Performance / July 2012

Transparency in Global Real Estate Markets Increases, Aiding Investors and Occupiers, According to Jones Lang LaSalle / June 2012

Positive Outlook for Hotel Performance in Latin America, According to Jones Lang LaSalle Hotels' Latin America Hotel Investor Sentiment Survey; Markets in Brazil, Mexico, Colombia and Chile Rank Most Optimistic for Investment Outlook / June 2012

U.S. Hotel Transaction Volume Reaches $5.1 Billion Thus Far in 2012; According to Jones Lang LaSalle Hotels' Database Average Price Per Key for Single-Asset Transactions Rises 5% on Full-Year 2011 Levels / June 2012

Hotel Investment Sentiment Strengthens in Europe Despite Uncertainty; According to Survey Conducted by Jones Lang LaSalle Hotels 46% of Cities Tracked Expected to Show Trading Performance Growth in next Six Months / June 2012

Polish Hotel 2011 Market One of the Best Performing in Europe; Warsaw Hotels Posting 8.3% Appreciation in Room Yield Over 2010 According to Jones Lang LaSalle Hotels Poland Hotel Intelligence Report / May 2012

Pace of Branded Hotels’ International Expansion to Reach New Focus and Intensity in 2012 According to Jones Lang LaSalle Hotels; While Brazil, Russia, India and China Remain a Key Focus, New Target Countries Include Indonesia, Malaysia, Nigeria, Turkey and Vietnam / May 2012

EMEA Hotel Investment Market During Q1 2012 Shows Strong Activity in London and Paris; Overall EMEA Investment Volume 39 % Lower than Q1 2011 According to Jones Lang LaSalle Hotels / April 2012

Single Asset Deals Accounted for 60% of Total Hotel Investment Volumes in 2011 Across EMEA According to Jones Lang LaSalle Hotels' Hotel Investment Highlights Report / March 2012

New York City Sets Record with $3.5 Billion in Hotel Transactions in 2011, a 150% Increase Over 2010; Jones Lang LaSalle Hotels Predicts New York Deal Volume Will Continue to Lead U.S. Cities in 2012 / January 2012

Global 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 / January 2012

Mark Wynne-Smith to Become CEO for Jones Lang LaSalle Hotels While Arthur de Haast Steps Up to Chairman / December 2011

Global 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 / November 2011

New 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 / September 2011

Jones Lang LaSalle Hotels Study, Lodging Industry in Numbers – Brazil 2011, Reveals Double-Digit Performance Growth for Brazilian Hotels for Second Consecutive Year / August 2011

Jones 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

U.S. 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

Jones 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

After 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

Jones 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
..

To search Hotel Online data base of News and Trends Go to Hotel.OnlineSearch

Home | Welcome | Hospitality News
| Industry Resources

Please contact Hotel.Online with your comments and suggestions.