Investment in the global hotel market will climb to $110 bn (EUR 80 bn), a 52% increase on the EUR 53 bn spent on hotels last year, according to the annual Hotel Investor Sentiment Survey released by the hotel division of property adviser Jones Lang LaSalle. The report also indicates that would-be buyers outnumber sellers in the global hotel sector by almost 4 to 1. About 25% of the survey respondents said they are considering developing hotels due to the lack of supply.
Investment in the global hotel market will climb to $110 bn (EUR 80 bn), a 52% increase on the EUR 53 bn spent on hotels last year, according to the annual Hotel Investor Sentiment Survey released by the hotel division of property adviser Jones Lang LaSalle. The report also indicates that would-be buyers outnumber sellers in the global hotel sector by almost 4 to 1. About 25% of the survey respondents said they are considering developing hotels due to the lack of supply.
'The strength of the global economy, resulting in increased business and leisure travel, combined with the ongoing weight of capital and constrained supply will continue to create an attractive investment environment,' said Arthur de Haast, head of JLL Hotels.
He added that the level of hotel investment is particularly strong in the US, 'however, there are fewer opportunities for deals on this scale so attention may turn to other regions, such as Europe, where private equity firms could still find value in buying large hotel businesses.'
