Global hotel investment volumes hit US$14.8 billion in the first half of the year, reflecting a 117 percent increase over the same period last year, according to global hotel investment services firm Jones Lang LaSalle Hotels.
“Despite various natural, economic and political crises witnessed globally in the first few months of 2011, hotel transactions continued gaining momentum and volumes for the full year are expected to exceed our previous forecast,” said Arthur de Haast, Global CEO for Jones Lang LaSalle Hotels.
He noted that hotel investment volumes worldwide are expected to reach US$34.8 billion this year, “marking a 28 percent year-on-year increase.”
Total transaction volumes in the Americas jumped 187 percent year-on-year to US$7.4 billion in the first half of 2011, fuelled by large single-asset deals in gateway cities like New York, while Europe, the Middle East and Africa (EMEA) recorded total hotel transaction volumes of US$4.7 billion, marking an 84 percent increase over the same period last year.
“Hotel sales in the Americas are anticipated to total US$16 billion, up from our previous forecast of US$13.1 billion for full-year 2011 based on the pace recorded so far, and large pending transactions including Chatham Lodging Trust and Cerberus Capital Management, L.P.’s acquisition of 64 assets for approximately US$1.13 billion,” Adler said.
In Asia Pacific, activity totalled to US$2.6 billion, with the main action taking place in Singapore, Australia, China, Japan and Hong Kong.
“Singapore dominated transaction activity in the first half of 2011 with volumes surpassing US$1 billion, reflecting pent up investor demand for the market,” said Scott Hetherington, CEO of Jones Lang LaSalle Hotels in Asia.
“We forecasted volumes to total US$2.75 billion in Asia earlier this year and we expect this figure to remain unchanged as growth in countries like Singapore and Thailand is expected to offset decelerated activity in Japan as a result of the March 2011 earthquake,” he said.
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