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In 2007 and up to the coming 2008, US hotel real estate will continually to explode |
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Written by Administrator
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Tuesday, 30 January 2007 |
The environment of hotel real estate deals will continually be tough and strong this 2007 and also into 2008, actually, a report came up which stating that Jones Lang LaSalle Hotels has foreseen this continuous growth. In 2006 marking the third consecutive year of the record sales shows that the transaction market in terms of lodging continues to explode in US.
Arthur Adler, the managing director and CEO-Americas of Jones Lang LaSalle Hotels stated that ‘The increasing number of private equity players are now continually influences hotel real estate. Since in 2005 a lot of investors who actually bought US hotel assets have seen their equity doubled in the next twelve months which makes even lot more invertors to be interested to hotel real estate. Actually we are expecting that this 2007 there will be more and more investors to the market which includes some non-traditional off-shoe and high-net-worth investors and also as institutional, pension fund, private equity and REIT off-shore buyers to the market. In addition to that we are expecting the public-to-private trend to continue which will certainly increase the accessibility of for-sale assets’.
Kristina Paider, the senior vice president of research and marketing for ones Lang LaSalle Hotels said that ‘The continual shorter hold periods of eighteen to twenty four months, compared with the traditional three to seven year hold periods, will also influence the amount of assets in the market over the next few years, as will the accessibility to debt and healthy industry fundamentals ‘.
Actually, trends in hotel real estate investment for the first time in about two decades all over the major regions of the world have allied, because of the increasing growth in investment activity in all market, this is first time in about two decades, and these facts are stated by the firm’s latest Hotel Investment Outlook. Hotel real estate investment made an enormous bound all over the world; it has register a sum of $72.5 billion in the year 2006, and which gain 62.9% higher than in 2005, and 60.9% upper than in 2004. It absolutely shows that it continually grows each year.
This drive will continue until 2007, though the largely global volumes are being anticipated to be slightly lower than in 2006, since there has been a decelerating portfolio transaction in Europe, which had an amazing growth portfolio sale in the past two years.
Generally, real estate is now being favored as an asset and hotel owners are starting to reinvests. Every region has made historical highs, in result with the growth of capital chasing opportunities and growing corporate profits.
Eliza Maledevic
Miami Real Estate |
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Last Updated ( Tuesday, 30 January 2007 )
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