"Look for the private equity merger and acquisition market to also pick up," added Robert Webster, Managing Director of Jones Lang LaSalle's Hotels & Hospitality Group. "In addition, Middle Eastern and Asian investors are likely to fund $1 billion in transactions this year as they selectively pursue opportunities in prominent gateway markets like San Francisco, Los Angeles, Miami, Washington D.C. and New York. We also expect several landmark hotels to trade in secondary cities from opportunistic international investors."
Beyond Brazil: Latin America and the Caribbean Investor interest in quality hotel product extends beyond the United States as Latin America and the Caribbean experience considerable growth. Opportunistic investors and hotel brands with some risk tolerance are looking to Latin America to make strategic plays in key markets where there are viable development opportunities. Mexico's expanding network of branded limited service hotels that cater to the middle class will be a primary growth area for investors. The Caribbean transaction market will be largely driven by resort or stalled projects defaulting loans. In terms of fundamentals, the standout markets will include the Dominican Republic, Jamaica and Aruba. The hotel space in South America will continue to make dramatic transformations as under-supplied countries like Brazil, Chile, Colombia and Peru are increasingly on the radar of intra-regional investors.
Future Looks Bright Macro-economic pressures have kept a lid on economic growth resulting in slow but steady growth. However, as the future comes into focus growth is poised to accelerate.
"A scarcity of high-quality, performing assets will drive competitive bidding pushing up capital values and driving down yields." Adler added, "Hotel fundamentals will continue to be driven by growing tourism, business and leisure travel in major gateway and convention markets, as well as in resort destinations throughout the Americas. This will result in increased occupancy and stronger pricing power. The United States is expected to experience RevPAR gains of six to seven percent, creating opportunities for buyers and sellers alike in 2013."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 click 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. [i] This refers to asset sales and does not include note and loan sales, and deed-in-lieu transfers
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