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
|
Contact: Paige Steers +1 312 288 2797 [email protected] |