Hotel operating fundamentals reassure outlook
Hotel operating fundamentals are generally holding strong, and in some cases are outperforming expectations, given the economic pressures. At the forefront of growth in revenue per available room (RevPAR) in 2013 are the world's gateway and resource-rich cities, which underscore the attractiveness high-quality, income-producing hotel real estate provides as an asset class. Global travellers will boost demand and average room rates in markets such as Istanbul, Munich, San Francisco, Boston, Sydney and Singapore, which have already enticed investor interest and will be the markets to watch in 2013.
A long road ahead
Transaction levels, capital values, hotel trading fundamentals and rents are generally improving against a backdrop of downward revisions to economic growth. However, given the amount of stimulus that continues to be injected into the world economy, economic growth rates in the coming years are expected to slowly improve."Investment strategies moving forward will be more structural and strategic than cyclical, impacting what we've always deemed as the 'typical' ebb and flow of the transaction market," concluded David Green-Morgan, Global Capital Markets Research Director for Jones Lang LaSalle. "Flexible investors and operators who can calculate risk and adapt the quickest will be the most successful next year." Jones Lang LaSalle's Hotels & Hospitality Group's annual Hotel Investment Outlook report will be broadly released in January 2013. To request a copy of the full report, please subscribe here. Jones Lang LaSalle's Hotels & Hospitality Group serves as the hospitality industry's global leader in real estate services for luxury, upscale, select service and budget hotels; timeshare and fractional ownership properties; convention centers; mixed-use developments and other hospitality properties. The firm's more than 265 dedicated hotel and hospitality experts partner with investors and owner/operators around the globe to support and shape investment strategies that deliver maximum value throughout the entire lifecycle of an asset. In the last five years, the team completed more transactions than any other hotels and hospitality real estate advisor in the world totaling nearly US$25 billion, while also completing approximately 4,000 advisory and valuation assignments. The group's hotels and hospitality specialists provide independent and expert advice to clients, backed by industry-leading research. For more news, videos and research from Jones Lang LaSalle's Hotels & Hospitality Group, please visit: www.jll.com/hospitality About Jones Lang LaSalle Jones Lang LaSalle (NYSE: JLL) is a financial and professional services firm specializing in real estate. The firm offers integrated services delivered by expert teams worldwide to clients seeking increased value by owning, occupying or investing in real estate. With 2011 global revenue of $3.6 billion, Jones Lang LaSalle serves clients in 70 countries from more than 1,000 locations worldwide, including 200 corporate offices. The firm is an industry leader in property and corporate facility management services, with a portfolio of approximately 2.1 billion square feet worldwide. LaSalle Investment Management, the company's investment management business, is one of the world's largest and most diverse in real estate with $47 billion of assets under management. For further information, please visit www.joneslanglasalle.com. SOURCE Jones Lang LaSalle