CHICAGO, Jan. 17, 2013 /PRNewswire/ -- Hotel real estate investors, who unlocked capital and aggressively bid on hotel assets in 2012, are expected to increase their buying activity in 2013.The abundance of equity capital and improving debt markets will support a buoyant market for hotel trades this year. Americas hotel transaction volume for the year is expected to surpass the $17.5 billion that 2012 netted, with a moderate increase to $18.5 billion[i], according to initial results from Jones Lang LaSalle's annual Hotel Investment Outlook report.
The Hotel Investment Outlook report is a forward-looking, global analysis which tracks key factors affecting the hotel investment market. The Americas highlights include:
- Competition for high-quality assets will push up capital values and drive down yields
- Strong re-emergence of hotel financing will be driven by CMBS
- Private equity funds to be the largest net buyers of hotels in 2013
"We expect 2013 to be another strong year for hotel transactions," said Arthur Adler, Americas CEO of Jones Lang LaSalle's Hotels & Hospitality Group. " The United States remains the world's most liquid hotel investment market which will lead the Americas region to transact approximately 55 percent of the global transaction volume. We should see global volumes top $32 billion this year."Urban Land Institute's Emerging Trends in Real Estate 2013 report agrees that this year will continue to gain transaction velocity, noting "transaction volume should finally gain momentum as buyers capitulate in the face of strong revenue growth and lenders dispose of more foreclosed assets."[ii]