Global hotel deals show slight rise during 2Q
Jones Lang LaSalle Hotels Reports
During the first half of 2009, Europe, Middle East and Africa (EMEA) was the most liquid region, with hotel transaction volumes of $1.9 billion, down 76 percent from the first half of 2008. The Americas was the second most liquid region globally, but also saw the most pronounced decline in transaction volume, down 86 percent to $1.0 billion. Asia Pacific hotel transaction activity showed a more moderate decline, comparatively, of 55 percent, to $0.9 billion.
Sustained revenue per available room (RevPAR) declines globally - mostly in the double digits - and ongoing debt market illiquidity continued to be significant challenges for hotel investors.
“Just 13 of the hotel transactions globally were in excess of $100 million, compared with 34 transactions during the first half of 2008. This shows that credit for larger transactions has dried up further this year, from an already constricted financing environment in 2008,” said de Haast.
The outlook for hotel transactions is starting to look more favourable. “Steady monthly increases in global transaction volume since May 2009 demonstrate that the industry is recovering from the trough in investment activity,” said de Haast. “With the number of distressed sellers on the rise, and a number of transactions approaching their closing dates, we expect to see higher hotel transaction activity in the second half of 2009.”
About Jones Lang LaSalle Hotels | Jones Lang LaSalle Hotels, the first and leading global hotel investment services firm, is uniquely positioned to provide the depth and breadth of advice required by hotel investor and operator clients, through a robust and integrated local network. In 2008, Jones Lang LaSalle Hotels provided sale, purchase and financing advice on over $3.7 billion worth of transactions globally relating to more than 120 assets. In addition, advisory and valuation services were provided on more than 600 assignments. The global team comprises over 220 hotel specialists, operating from 32 offices in 19 countries. The firm’s advice is supported by a dedicated global research team, which produced 87 publications in 2008 in addition to client research. Jones Lang LaSalle Hotels’ services span the hospitality spectrum; from luxury single assets and large portfolios to select service and budget hotels, resorts and pubs. Their services include investment sales, mergers and acquisitions, capital raising, valuation and appraisal, asset management, strategic planning, operator selection, management contract negotiation, consulting, industry research and project development services. Jones Lang LaSalle Hotels’ clients have access to the resources of its parent company, Jones Lang LaSalle (NYSE: JLL). .