Jones

Hotels and hospitality experts at real estate financial and professional services firm Jones Lang LaSalle predict that global hotel transaction volume will reach $32bn in 2013.

According to the company’s annual Hotel Investment Outlook report, which will be released in late January, investor groups will continue to be interested in asset acquisition.

Cross-border capital, which accounted for 30% of global hotel investment last year, could also increase this year.

Jones Lang LaSalle Hotels & Hospitality Group global CEO Mark Wynne-Smith said: "Inadvertent hotel owners, like banks and receivers, will continue to drive a significant share of hotel product to market. We also expect institutional investors to liquidate select non-core assets that will create opportunities for value-add investors."

Private equity investors will dominate, while real estate investment trusts will continue to acquire core properties in gateway markets.

"Flexible investors and operators who can calculate risk and adapt the quickest will be the most successful next year."

Funds from the Middle East will continue to hunt for trophy assets.

The experts are of the opinion that sovereign wealth funds, mutual funds and insurance companies will replace large banks as traditional providers of real estate debt financing.

Despite regional variances, worldwide debt availability is expected to be at the highest level this year since 2007.

Resource-rich cities such as Istanbul, Munich, San Francisco, Boston, Sydney and Singapore are expected to witness a surge in demand and average room rates in 2013.

Jones Lang LaSalle global capital markets research director David Green-Morgan said that investment strategies will be more structural and strategic than cyclical.

"Flexible investors and operators who can calculate risk and adapt the quickest will be the most successful next year," he added.

Over the last five years, Jones Lang LaSalle’s Hotels & Hospitality Group completed nearly $25bn worth of transactions.


Image: Global hotel transaction volume is expected to reach $32bn in 2013. Photo courtesy of Jones Lang LaSalle.