The hotel and hospitality experts at Jones Lang LaSalle Hotels & Hospitality Group forecast a busy 2013 in hotel transactions – with hotel deal volume to reach $33 billion.
Further insights include:
- Cross-border capital could also accelerate in 2013
- Global debt availability is expected to be at its highest level since 2007
- Private equity and REITs will dominate purchasing activity with 60 percent of the global market
- The biggest sellers will be bank-induced refinancing challenges.
“Inadvertent hotel owners, like banks and receivers, will continue to drive a significant share of hotel product to market.
We also expect institutional investors to liquidate select non-core assets that will create opportunities for value-add investors,” said Mark Wynne-Smith, Global CEO of Jones Lang LaSalle’s Hotels & Hospitality Group.
“While buyers have indicated a greater intent to purchase in 2013, the global economic uncertainty will keep a ceiling on transaction volumes.”
Further growth however is expected to remain adrift, as economic pressures in a number of the world’s mature economies continue to exist.
Also dampening further growth are unrealistic price expectations from the seller sides and financing restrictions in certain countries.
The recently released report sees a growing trend in the Americas with the EMEA and Asia Pcific Regions remaining constant.
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