2015 Hotel Investment Outlook

February 10, 2015
A rising tide lifts all boats, and the strong flow of cross-border capital into hotel real estate assets is galvanizing increased deal momentum. We forecast global hotel real estate transaction volume to reach $68 billion in 2015. This represents a 15% increase on 2014 levels and the third-highest annual total on record. Our projection comes on the heels of a robust 2014, where global hotel transaction volumes reached nearly $60 billion, a 10% increase over the year before. Private equity investors are fully loaded and under pressure to invest funds. Cross-border trends to watch in 2015: 1. Floodgates opening for Chinese outbound capital: Asian money, driven by outbound Chinese capital, is growing rapidly due in part to increased activity from insurance companies. 2. Middle Eastern capital to target high-profile assets: Led by investors in the UAE and Qatar, outbound capital will remain strong, though while significant in dollar terms, it is not expected to grow by the same pace as Asian capital. 3. North American private equity funds are cash flush and ready to deploy: U.S. funds exported more than $4 billion in capital and further growth is expected in 2015. Hotel Investment Outlook is the lead annual thought-leadership publication produced by JLL’s Hotels & Hospitality Group. One-of-a-kind in terms of its truly global coverage, the report covers the must-know figures, trends and projections for hotel investment executives across the globe. Visit: http://www.jll.com/hio to learn more
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