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Global Market Perspective – Q2 2012

Hotel operators are increasing acquisition activity, a trend which emerged last year and is gathering pace into 2012.

Poland gaining pace

The Polish hotel investment market has gained pace due to the country’s impressive economic performance and its market shows great potential for further growth compared to major western European cities in terms of risk versus return parameters.

Miami: Investors look ‘beyond the beach'

Hotel transactions volumes are to spike at $650 million in 2012, reaching the second highest level in a decade as investors look beyond the beach for investment opportunities. According to our latest Hotel Intelligence Miami, transaction volumes are projected to increase by 17% over 2011 volumes.

Note and REO Sales to dominate

Transactions involving large portfolios of notes, many of which are collateralized by hotels, along with increasing sales of bank real estate owned (REO) hotel properties, will take center stage in 2012.

Branded Hotels’ International Expansion Picks up Pace

Geographic expansion and diversification is hardly a new concept in growing a business. The pace in which branded hotel companies are pursuing assets in new locations will reach a new focus and intensity in 2012.

Jones Lang LaSalle reports revenue growth of 18 percent

The company reported $22 million of adjusted net income for the first quarter of 2012. Operating income margins expanded in all operating segments.

Boutique Hotel Palomar Sold

On behalf of an affiliate of The JBG Companies, Jones Lang LaSalle Hotels arranged the sale of the Hotel Palomar Arlington, the only boutique hotel in Arlington, Virginia. HEI Hotels & Resorts purchased the 154-room asset and expects to rebrand the hotel as Le Meridien Arlington.

New York: Most liquid hotel market globally

Our latest Hotel Intelligence New York shows that New York is the most active hotel transaction market in the U.S. In 2011, hotel transaction volume in Manhattan reached $3.5 billion, exceeding the previous record of $2.7 billion, set in 2006. Hotel deal volume in Manhattan is expected to range from $3.0 billion to $3.4 billion in 2012.

Strong activity in London and Paris

In the first quarter of 2012, hotel investment volumes in Europe, Middle East and Africa (EMEA) totalled €1.5 billion, a 39 % decline compared to Q1 2011. However, volumes in Q1 2011 were distorted by approximately €1billion from three significant transactions (Marriott Champs Elysées, Ritz Carlton Moscow and a large Accor European portfolio), so stripping these out, volumes increased by 7% compared to the same period last year.

Japan's hotel market after the quake

Our latest FocusOn report on Japan provides an update to our reports issued in 2011, outlining the impact on the Japanese hotel market of the earthquake that hit the eastern part of Japan, (“3-11 earthquake”). We assess the extent to which our original predictions were met, plus new issues, if any, which should be taken into account.

New luxury hotel in Foshan

On behalf of Louvre Furnishings Jones Lang LaSalle Hotels assisted in securing an international hotel operator for Louvre Furnishings’s luxury hotel in Foshan, Guangdong Province.

Bengaluru’s Lodging Market

What remains as one of the largest threats to this market’s strength is a pipeline as strong as 9,800 rooms in the branded segment slated to enter in the coming five years.