The value of international hotel deals is expected to increase by a staggering 33% to $60b (£31b) this year, claim property agents Jones Lang LaSalle hotels (JLL).
JLL’s research The Hotel Investment Sentiment Survey found that transaction levels are coming close to reaching 2005 levels ($45b) in six months, with $41b (£21.5b) of business conducted from the start of the year to June.
Arthur de Haast, JLL global chief executive, said: “We had expected to see similar levels to last year, but we certainly did not expect to get close to 2005 levels in just six months.”
He added the majority of activity had been in the USA, although activity in all regions had increased significantly in the first half of the year. He expected Europe and Asia Pacific would see an even stronger second half.
The study found the activity is being driven by several factors: the large quantity of capital seeking real estate investment; inexpensive debt; the emergence of private equity firms both selling and buying properties; and the less attractive returns on other types of real estate.
The research is due to be officially released next week.
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By Emily Manson
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