Acquisitions and hotel sales for 2011 in the Americas will increase about 25 percent, according to Jones Lang LaSalle. The 25 percent increase in hotel sales, according to the report is buoyed by commercial real estate investments and investors seeking to deploy cash.
The London-based REIT said today, hotel sales and transactions may total to $13 billion this year, as volume in 2010 was about $10.5 billion, about five times the previous year’s rate.
Arthur Adler, Americas chief executive officer and managing director at Jones Lang LaSalle Hotels said, REITs are expected to be a dominant buyers this year because of additional capital raises because REITs are well capitalized, plus an access to financing.
Adler also added, institutional investors and private equity groups will increasingly join the transactions for hotel sales as terms and leverage improves.
The revpar or revenue per available room, in the top 25 market in the U.S. from $71.55 a year earlier increased to $76.61 within last year’s first 11 months, according to Smith Travel Research Inc from Hendersonville, Tennessee.
Middle East real estate investors will help increase deals on the U.S. East Coast in 2011, Jones Lang said. Asian investors, who accounted for approximately 8 percent of U.S. sales in 2010, will continue to enhance demand and target mainly the western U.S., Lang LaSalle said.
Lang LaSalle’s forecast’s refers to property transactions or hotel sales and does not count loan and note sales. The company also said that the United Sates will be one of the most lively markets for hotel sales, worldwide.