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Hotel deal volumes rocketed 50% to $85 billion in 2015, boosted by a record proportion of cross-border capital and single asset transactions.

I​n all, 53 hotels sold for over $600,000 per room last year, which reflects the high levels of confidence and capital in the hospitality sector. Activity in 2016 will be more measured, with fewer headline-grabbing 'trophy' properties on the market.

Hotel values will continue to rise, with secondary markets providing the most fertile investment landscape. RevPAR is projected to grow by 4-5% globally this year. Consolidation, single assets, and secondary markets are set to be the big stories in 2016​. ​

Global Anticipated Hotel Transaction Volume

  • Global hotel transactions rose nearly 50%, to $85 billion in 2015 – the second-highest year ever.
  • We also saw the highest ever volume of single-asset transactions at $47 billion.
  • Hotel values will continue to rise in 2016, with the highest value increases expected across secondary markets.
  • Cross-border activity will remain strong, and the big targets will be assets in Japan and across Western Europe.
  • We expect to see more mergers and acquisitions in 2016.
  • Consolidation, single assets, and secondary markets to be the big stories.

 

Click here to read the full report.

 

About JLL’s Hotels & Hospitality Group

JLL (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. A Fortune 500 company with annual fee revenue of $4.7 billion and gross revenue of $5.4 billion, JLL has more than 230 corporate offices, operates in 80 countries and has a global workforce of approximately 58,000.  On behalf of its clients, the firm provides management and real estate outsourcing services for a property portfolio of 3.4 billion square feet, or 316 million square meters, and completed $118 billion in sales, acquisitions and finance transactions in 2014. Its investment management business, LaSalle Investment Management, has $57.2 billion of real estate assets under management. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit www.jll.com.

Contact: Mark Wynne Smith Global CEO

Mark.Wynne-Smith@eu.jll.com

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