Nearly 46 percent of hotel investors say they intend to acquire assets while sell sentiment reaches a four-year high, according to the Hotel Investor Sentiment Survey from Jones Lang LaSalle Hotels. “The increase in ‘buy’ intentions affirms our view that there is significant demand among private equity and institutional investors, and, increasingly, real estate investment trusts, to make hotel investments at a favorable basis,” says Arthur Adler, managing director and Americas CEO for Jones Lang LaSalle Hotels.
“Buy” intentions are highest in Hawaii (69 percent of respondents), Chicago (60 percent), Boston (57.1 percent), and Miami (53.8 percent) as these markets have witnessed double-digit growth in revenue per available room (RevPAR) over the past year. Looking at North America, Canada’s “buy” intentions are highest in Vancouver at 43.8 percent and in Mexico City at 58.3 percent.
Additionally, one out of 10 investors indicated that their primary focus over the next six months will be to sell assets. “The concurrent increase in ‘sell’ sentiment suggests that the amount of product available for purchase will increase over the next six months,” Adler notes. “Together the survey responses point to an increasingly active investment market.”
