Hospitality experts have revealed it expects global hotel transaction volumes to reach an eight-year high of up to US$68 billion in 2015.
“The hotel market continues to strengthen and investors are eager to chase after top hotel deals,” Global ceo, Mark Wynne-Smith said.
“We predict a rise in revenue per available room (RevPAR) of 5 to 8% this year, and that bodes well for the sector with even more runway ahead.”
JLL Hotels & Hospitality Group revealed the figure would rest somewhere between US$65 billion to US$68 billion in 2015, up 15% over 2014 volumes, with Europe, the Middle East and Africa regions to lead the way garnering US$24.7 billion this year.
Meanwhile, Asia Pacific is expected to tally US$8.5 billion in 2015.
The forecast is based on the company’s 2015 Hotel Investment Outlook tracks key factors influencing the global hotel investment market.
“A transaction volume increase of 10 to 15% is anticipated, marked by growing interest in Japan, and in particular for portfolio deals in the country, as well as steady confidence in Australia,” according to JLL.
Other drivers of hotel transactions highlighted include strong demand fundamentals, increased liquidity in debt markets, record-high levels of single-asset trades, more portfolio activity in secondary markets, and an upswell in off-shore capital.
The company said it expects US-based private equity funds and Middle East investors to continue their reign as top exporters of outbound capital, but said it is the Chinese who will lead the pack in year-on-year increases in capital deployed as its government overturns policies on big-ticket foreign investments and approval for overseas purchases.
Yesterday, Chinese-owned Wanda Group announced it would splurge $1.7 billion in investments in Australian real estate including a $900 million beachfront resort on the Gold Coast.
JLL anticipates Chinese outbound capital to increase five-fold to US$5 billion in 2015.
