Checking in: Foreign investor sees investment opportunity in U.S. hotel market

This week, the asset management unit of Seoul–based Mirae Asset Financial Group acquired a 15-hotel portfolio in the United States from Anbang Insurance Group Co. for $5.8 billion, marking the single-highest price tag for an overseas alternative investment by a South Korean company.

The foreign investor is seeing a huge investment opportunity within the U.S. hotel market. So what’s been going on in the sector?

The U.S. hotel pipeline has reached a high of 200,000 rooms in construction, which is the highest it’s reached in a decade.

During the “Riding the pipeline’s 10-year high” session at the 2019 Hotel Data Conference, Dominik Kozissnik, global director of census at STR, parent company of HNN, looked into what has changed in the U.S. pipeline since 2007.