Hotel transaction volume in Americas to rise in 2013
Hotel real estate investors will increase their buying activity in 2013, says the new Jones Lang LaSalle Hotel Investment Outlook report.
The annual report shows that an abundance of equity capital and improving debt markets will support a strong market for hotel trades in the coming year.
The report says that hotel transaction volume for the year in the Americas should surpass the $17.5 billion netted in 2012, edging close to $18.5 biillion in 2013.
"We expect 2013 to be another strong year for hotel transactions," said Arthur Adler, Americas CEO ofJones Lang LaSalle’s Hotels & Hospitality Group. "The United States remains the world’s most liquid hotel investment market which will lead the Americas region to transact approximately 55 percent of the global transaction volume. We should see global volumes top $32 billion this year."
The report cites several key drivers of deal activity including: availability and cost of capital, changes in supply and demand fundamentals, real estate investment trust stock prices, the size of the assets brought to market and the overall hotel ownership composition as more hotels move into the hands of traders verse long-term holders.
Robert Webster, managing director of Jones Lang LaSalle’s Hotels & Hospitality Group pointed out that, "Middle Eastern and Asian investors are likely to fund $1 billion in transactions this year as they selectively pursue opportunities in prominent gateway markets like San Francisco, Los Angeles, Miami, Washington D.C.and New York. We also expect several landmark hotels to trade in secondary cities from opportunistic international investors."
Abercrombie & Kent hails $500 million funding boost
British Airways passengers endure 11-hour 'flight to nowhere'
CLIA: Anti-cruise demos could cause itinerary changes in Europe
Gatwick braces for strike
Co-pilot faints, easyJet flight issues ‘red alert’