|
INVESTORS GRAVITATE TO LUXURY AND SELECT-SERVICE HOTELS WITH RENEWED OPTIMISM FOR URBAN MARKETS .
Contributed by OPHELIA MAKIS , JLL HOTELS & HOSPITALITY GROUP
|
Despite strong hotel investment levels in recent years , widening capital market dislocation wedged by the banking turmoil has slowed momentum in Q1 2023 . A lack of portfolio and larger trades due to debt market volatility resulted in overall declines in hotel investment volume relative to the two prior years . However , Q1 investment volume remains |
in-line with pre-COVID averages given that the last two years experienced outsized hotel liquidity . Moreover , the number of single-asset trades reached the second-highest amount in history , driven by smaller cheque-size deals . While transaction activity in Q2 2023 is expected to be subdued akin to Q1 , the hotel industry remains attractive among investors , particularly |
for luxury and select-service hotels with renewed optimism for urban markets .
OPPORTUNE TIME TO INVEST U . S . hotels have demonstrated resilience in the face of recent economic challenges , such as increasing interest rates , inflation and geopolitical volatility evidenced by Q1 2023 RevPAR exceeding 2019 levels
|
50 hotelsmag . com Jul / Aug 2023 |