Hotel deal volumes rocketed 50% to $85 billion in 2015, boosted by a record proportion of cross-border capital and single asset transactions.
In 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.
Engage with the findings of our latest global flagship report below or read the full report.
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.
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.
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.
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.