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Hotel Investment Outlook 2016

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Strength in Unity​

Hotel deal volumes rocketed 50% to $85 billion in 2015, boosted by a record proportion of cross-border capital and single asset transactions.

I​n all, 53 hotels sold for over $600,000 per room last year, which reflects the high levels of confidence and capital in the hospitality sector. Activity in 2016 will be more measured, with fewer headline-grabbing 'trophy' properties on the market. 

Hotel values will continue to rise, with secondary markets providing the most fertile investment landscape. RevPAR is projected to grow by 4-5% globally this year. Consolidation, single assets, and secondary markets are set to be the big stories in 2016​. ​

Look back at a record 2015

Get behind the numbers with Mark Wynne Smith
and Jessica Jahns

​ ​

Engage with the findings of our latest global flagship report below or read the full report.

Global Anticipated Hotel Transaction Volume

2016

$70

billion

  • Global hotel transactions rose nearly 50%, to $85 billion in 2015 – the second-highest year ever.

  • We also saw the highest ever volume of single-asset transactions at $47 billion.

  • Hotel values will continue to rise in 2016, with the highest value increases expected across secondary markets.

  • Cross-border activity will remain strong, and the big targets will be assets in Japan and across Western Europe.

  • We expect to see more mergers and acquisitions in 2016.

  • Consolidation, single assets, and secondary markets to be the big stories.

  • AMERICAS
  • ASIA PACIFIC
  • EMEA

ANTICIPATED HOTEL TRANSACTION VOLUME 2016

$37 billion

Americas to lead the way

  • The Americas region is forecast to see transactions of $37 billion in 2016.

  • The United States is again expected to be the most liquid country in terms of transaction volume.

  • Offshore investors will likely become the second-largest buyer type after private equity.

ANTICIPATED HOTEL TRANSACTION VOLUME 2016

$8.5 billion

Japan and Australia to remain standouts

  • Asia Pacific transaction volumes are expected to be around $8.5 billion.

  • Japan and Hong Kong saw their highest level of transactions ever in 2015, and Japan will remain the standout Asia Pacific market.

  • Mainland China saw in excess of $1 billion in hotel trades, and this growth is expected to continue in 2016.

ANTICIPATED HOTEL TRANSACTION VOLUME 2016

$25 billion

Single assets, secondary markets

  • EMEA volumes are predicted to reach $25 billion, with the region expected to remain the largest destination for offshore capital

  • The bulk of EMEA sales activity will be driven by single-asset transactions, which are expected to grow by 35%.

  • An increasing share of deals will take place in secondary markets such as provincial UK and German cities, Spain, Italy and Portugal.

Source: JLL
Note: Data pertains to 2015
Source: JLL
Note: Indexed to 12-Month Moving Average Starting 2006

Contacts


MARK WYNNE SMITH
Global CEO,
Hotels & Hospitality
+44 207 399 5983


mws@eu.jll.com

LAURO FERRONI
Global Head Hotels &
Hospitality Research
+1 312 228-2566


lauro.ferroni@am.jll.com

JESSICA JAHNS
Head of Hotels &
Hospitality Research,
EMEA
+44 207 399 5821

jessica.jahns@eu.jll.com

KENT MICHELS
Head of Hotels &
Hospitality Research,
Americas
+1 312 228 2927

kent.michels@am.jll.com

FRANK SORGIOVANNI
Head of Hotels &
Hospitality Research,
Asia Pacific
+65 6494 3668

frank.sorgiovanni@ap.jll.com