INVESTMENT
What ’ s SIGNALING RECOVERY ?
Hotel transaction volume has increased markedly since the onset of the pandemic and is expected to continue growing in the second half of 2021 as the hospitality industry navigates its recovery and investors ramp up acquisitions .
The hotel transaction market has been livelier in the first half of 2021 , with transaction volume up over 280 % compared to the first half of 2020 . This activity includes Blackstone and Starwood ’ s purchase of Extended Stay America , a large public-to-private transaction by two bellwether private equity investors that evinces long-term confidence in the sector . Most recently at the Americas Lodging Investment Summit ( ALIS ) in Los Angeles , anecdotal comments from hotel investors showed a welcoming and surprising uptick in properties available for sale .
The pandemic and related economic slowdown created the lowest level of hotel transaction volume since 2009 . Hotel transaction volume in the U . S . in 2020 was only $ 7.6 billion , and of that , 48.2 % occurred in the first
Contributed by JAMES STOCKDALE EXECUTIVE VICE PRESIDENT , JLL CAPITAL MARKETS INVESTMENT SALES FOR JLL ’ S HOTELS & HOSPITALITY GROUP
Total Hotel Transaction Volume ( billions $ USD )
$ 50
$ 45
$ 40
$ 35
$ 30
$ 25
$ 20
$ 15
$ 10
$ 5
$ 0
Hotel Transaction Volume : 2007 - H1 2021
Single Assets
Portfolios
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
+ 282 % Y / Y Change
H1
H1 2020 2021
three months of the year , leaving only $ 3.9 billion in deal volume for the remainder of the year . Throughout the prior cycle , annual hotel transaction volume averaged $ 25.2 billion from 2010 to 2019 .
One of the key differences influencing transaction volume today compared to the aftermath of the Great Recession is the amount of