New York registers $3.5bn in 2011 hotel transactions

1st February 2012 (Last Updated February 1st, 2012 18:30)

New York City has recorded 18 hotel transactions in 2011, which comprised $3.5bn in assets traded and represented a 150% increase over 2010 volumes, according to Jones Lang LaSalle Hotels' Hotel Intelligence New York report.

New York City has recorded 18 hotel transactions in 2011, which comprised $3.5bn in assets traded and represented a 150% increase over 2010 volumes, according to Jones Lang LaSalle Hotels’ Hotel Intelligence New York report.

New York’s hotel transaction volume during 2011 represented more than 20% of the total transaction activity in the US hotel market, the report observed.

About 50% of the city’s acquisition volume was driven by real estate investment trusts (REITs) in 2011.

Jones Lang LaSalle Hotels’ executive vice president Amelia Lim said REITs now own about 20% of the room stock in New York.

The total value of hotel deals in 2012 is expected to be between $2.2bn and $2.6bn, based on assets in various stages of the disposition process, representing about 15% of the US’s total transaction volume.

The report observed that about a dozen single asset hotel transactions are expected to close in New York this year.

During 2011, Manhattan was the most liquid city for hotel transactions across the globe.

London, Singapore, San Diego and Paris made up the remaining top five markets, each achieving more than $1bn in transactions.

New York is also likely to gain international interest from Middle Eastern buyers and select Asian investors, the report noted.

The study forecasts that New York’s room supply will increase by 3.4% with 17 new hotels, totalling 2,700 new rooms expected to open in 2012.