Total global expectation for hotel real estate transactions in 2017 is $60 billion, mirroring the level recorded in 2016.
A year of resets and changes stands to make way for a year of stability and greater consistency for investment flows. Acording to JLL report – Hotel Investment Outlook 2017, the company's total global expectation for hotel real estate transactions in 2017 is $60 billion, mirroring the level recorded in 2016.
- Activity in the Americas, after a relatively strong year underpinned by off-shore buyers, is slated to remain flat at up to $31.0 billion.
- Asia Pacific volumes are expected to hold steady at $8.5 billion in 2017.
- The Europe, Middle East and Africa region is expected to see growth in volumes from approximately $20.5 billion in 2016 to $22.5 billion in 2017
- Private equity investors are making way for institutional investors, whose market share is four times what it was in 2015
- Despite the economic uncertainty, Europe continues to show growth, propelled by active markets like Spain
- The tourism industry has shown resilience and travel remains on the increase. The movement of international travellers is expected to grow 4% annually over the next 10 years, resulting in a lot of heads in beds.
Transactions in 2017 will generally be driven by funds reaching the end of their hold period and the subsequent restructuring of portfolios, rather than high income growth.
Investors will continue to pursue yield, and move into more secondary and tertiary markets. Transaction structures continue to evolve, and the role and clout of private equity funds is changing. Some markets where hotel performance has turned negative will see more stress in 2017, resulting in potential opportunities for buyers.
Tatiana is the news coordinator for TravelDailyNews Media Network (traveldailynews.gr, traveldailynews.com and traveldailynews.asia). Her role includes monitoring the hundreds of news sources of TravelDailyNews Media Network and skimming the most important according to our strategy.
She holds a Bachelor's degree in Communication & Mass Media from Panteion University of Political & Social Studies of Athens and she has been editor and editor-in-chief in various economic magazines and newspapers.