Global hotel investment up 53% in Q1: JLL

The global hotel investment market experienced a strong start to the year with first-quarter transaction volumes reaching $2.8 bn (EUR 3.2 bn), a 53% increase on the $1.8 bn transacted in Q1 2009, according to Jones Lang LaSalle.

Europe, Middle East and Africa (EMEA) remained the most active region recording $1.1 bn of hotel sales, a 46% year-on-year (y-o-y) increase for the same period, while the Americas and Asia Pacific regions recorded Q1sales worth $991 mln (+70% y-o-y) and $736 mln (+43% y-o-y) respectively. In EMEA the UK accounted for $324 million of hotel sales, the highest level recorded in the region for the period and a significant year-on-year increase compared to the $92 million transacted in Q1 2009.

Arthur de Haast, Jones Lang LaSalle Hotel’s Global CEO, said: 'With more positive investor sentiment for hotel real estate assets, transactional activity has accelerated significantly since the start of the year. As the global credit markets have begun to ease there is a greater weight of capital targeting the market for acquisition opportunities. We have also witnessed a noticeable increase in stock being offered to the market with increased sale activity from banks and other lenders who have taken control of more assets over the last year in an attempt to reduce their hotel loan portfolios.'

Maintaining the trend from 2009 institutional investors have remained the most prolific investors across EMEA, seeking assets in secure Western European markets with stable incomes, and were responsible for more than a third of buying activity in the region.