Global hotel investment volumes last year reached $30bn (£19bn) worldwide – an increase of 13% on 2010.
According to Jones Lang LaSalle’s Hotel Investment Outlook 2012 report, despite the continuing economic uncertainty, global hotel transaction volumes will hold steady in 2012 to again reach upwards of $30bn.
Private equity players are expect to remain ambitious in 2012. Sovereign wealth funds and private high-net-worth individuals will take a long-term view and make strategic acquisitions globally. Public companies, notably REITs, are expected to focus on existing stable acquisitions, rather than new ones.
Jones Lang LaSalle Hotels believes that the biggest sellers in 2012 are likely to be bank-induced, as a result of debt maturities and consequent refinancing challenges. Private equity firms and institutional investors are also expected to liquidate some previous acquisitions.
Emerging markets remain the global growth engine. Growth in China and India is slowing, although both have good momentum. Activity is building in Central and Eastern Europe – notably in Poland – activity in Russia has jumped up, and South America continues to excite investors.
Arthur de Haast, chairman of Jones Lang LaSalle Hotels, said: “We expect that portfolio deals will dominate in several of these markets as banks, whenever they have a large portfolio, prefer to look for a portfolio solution to exit as opposed to selling assets individually.”
annabel.dixon@estatesgazette.com
