SAN DIEGO — Hotel dealmaking, which fell into gridlock with the global economic downturn in 2009, increased five-fold in the Americas last year, and deal volume is expected to increase 15% to 25% globally this year, according to Jones Lang LaSalle Hotels.
In its Hotel Investment Outlook report released Monday at the Americas Lodging Investment Summit, Jones Lang LaSalle said that $24.3 billion in hotel real estate traded hands globally in 2010 as investors made their way back into the game.
The Americas region registered the most dramatic rise in 2010, with $11.1 billion, driven by acquistions by real estate investment trusts and the $3.9 billion purchase of Extended Stay Hotels.
The Europe, Middle East and Africa was the second most liquid region, experiencing a more than 110% jump in volumes to $9.3 billion. Activity across Asia-Pacific edged upward at a more moderate pace, with total sales of $3.9 billion, reflecting lower levels of leverage in the market and hence fewer distressed sales, along with a slowdown in deal pace in Japan.
"The rebound of operating fundamentals is a motivating tonic for both buyers and sellers, as is the broad cross section of equity capital in the market," said Arthur de Haast, global CEO for Jones Lang LaSalle Hotels. He added that company expected volumes this year to reach $28 billion to $30 billion globally.
Hotel real estate sales in the Americas are expected to total up to $13 billion in 2011.
"Investor confidence is on a robust rebound," said Arthur Adler, the company’s CEO and managing director for the Americas. "Markets are expected to continue to recover through 2011 as the economic upturn solidifies. Dominant acquirers of hotel assets in 2011 will be [real estate investment trusts], institutional investors, and private and high-net-worth investors with opportunistic capital."
Hotels editor Jeri Clausing is blogging from the Americas Lodging Investment Summit. Click here to read her reports.