Jones Lang LaSalle predicts global hotel transaction volumes will rise by five to 10 percent to roughly $50 billion in 2014. The Americas should drive the increase with a 15 percent jump in 2014 through an abundance of equity and debt capital, which is expected to surpass the 2013 five-year high of $24 billion. 


There are several driving factors influencing hotels investment in the Americas. Private equity and REITs are expected to comprise of two-thirds of total hotel acquisitions volume in 2014. U.S. hotel fundamentals have a strong outlook with a five to six percent increase in 2014.
“This is a good time to be a hotel investor and owner as we expect several more years of strong and growing fundamentals, and 2014 will be yet another active year for hotel transactions,” says Arthur Adler, Americas CEO and managing director of Jones Lang LaSalle’s Hotels & Hospitality Group. “We are optimistic about the near- and long-term prospects for the industry.”
The 35 percent increase in global transactions during 2013 can largely be credited to the amount of capital pursuing the sector with private equity funds leading the way. During the next several years these funds will have a buying capacity with leverage of up to $10 billion for hotel acquisitions.

”We expect investors to seek a significant amount of financings and recapitalizations in 2014,” says Mathew Comfort, managing director of JLL’s Hotel Investment Banking platform. “Hotels will remain a targeted asset class for lenders as they can offer high yields relative to other real estate.”

Although offshore investors largely target core assets in gateway markets, foreign buyers will seek resorts in 2014. As the economy strengthens and leisure travel picks up, resort transactions are expected to also gain momentum. For example, Mexico’s lodging market, in particular Cancun, Los Cabos, and Mexico City, is showing signs of strong performance.
