global hotel

According to the a new report from JLL, the global hotel investments volume will reach US$70 billion this year.

“2015 was an exceptional year and in 2016 we’re likely to see a more measure approach to transactions and we’re predicting overall volumes in the region of US$70 billion,” said Global CEO of JLL’s Hotels & Hospitality Group, Mark Wynne-Smith.

While the prediction marks a decline on the previous years’ volumes, Wynne-Smith expects activity to remain robust. “The areas of good news are around single assets; we think private equity will be cleaning up their portfolios so we’ll see single asset sales to increase by about 35 percent.”

“The global real estate market is moving at multiple speeds and looking into 2016, the nature of deals will vary from region to region,” said Jessica Jahns, head of EMEA hotels and hospitality research, JLL. “EMEA reported hotel volumes of 45 billion in 2015, an uplift of 45 per cent and is expected to be the largest destination of offshore capital this year.”

However, investors’ focus is expected to shift away from the traditional gateway cities of Paris and London. Instead, they’re expected to focus on secondary cities such as Birmingham and Manchester in the UK, and in the US, cities across the mid-West in the US – will attract a greater proportion of capital.

Click on the  below for Mark Wynne-Smith’s comments;

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