Hotel transaction volume forecast to reach $60b in 2017
- April 1, 2017: Vol. 29, Number 4

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Hotel transaction volume forecast to reach $60b in 2017

by Andrea Waitrovich

Total global hotel real estate transactions in 2017 are expected to reach $60 billion, mirroring the level recorded in 2016, according to JLL. Activity in the Americas, after a relatively strong year underpinned by offshore buyers, is slated to remain flat at $31 billion.

Transactions in 2017 generally will be driven by funds reaching the end of their hold periods and the subsequent restructuring of portfolios, rather than high income growth, forecasts JLL. Investors will continue to pursue yield and move into more secondary and tertiary markets.

Hotel occupancy in the United States reached a new record in 2016, despite increases in supply, suggesting the market remains robust. But growth has become more uneven, and a handful of major markets — such as Houston, Miami and New York City — have seen contraction. In 2017, JLL predicts the strongest performers will be secondary markets, along with West Coast markets and Washington, D.C.

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