Jones Lang LaSalle Hotels has released its second quarter statistical analysis of the global hotel investment market, which reveals $14.8 billion in hotel assets changed hands in the first six months of 2011.
Compared with the same period last year, this represents a 117 per cent increase, which according to Jones Lang LaSalle Hotels is driven by the easing levels of liquidity, improved hotel trading performance and banks’ actions to speed up workout programs.
The Americas registered a compelling 187 percent year-on-year upsurge with transaction volumes totalling $7.4 billion, driven by large single-asset deals in gateway cities like New York.
A total of $4.7 billion in hotel transactions took place in Europe, Middle East and Africa (EMEA) in the first half of 2011, marking an 84 per cent increase on the same period last year.
Activity accelerated as a result of a marked increase in the number of assets going into administration. In Asia Pacific, deal volume totalled $2.6 billion, a 59 per cent increase on the prior-year period.
“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 chief executive for Jones Lang LaSalle Hotels.
“We now anticipate full-year numbers to reach $34.8 billion globally, marking a 28 per cent year-on-year increase.”
Recent notable deal includes Morgans Hotel Group selling the 168-room Royalton and 114-room Morgans Hotels in New York to FelCor Lodging Trust for $140 million.
“Hotel sales in the Americas are anticipated to total $16 billion, up from our previous forecast of $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 $1.13 billion,” added Arthur Adler, chief executive-Americas of Jones Lang LaSalle Hotels.
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