JLL: Hotel investors plan to buy in short term.In the Jones Lang LaSalle Jones Lang LaSalle (NYSE: JLL) is a major real estate and money management services firm headquartered in the Aon Center in Chicago, Illinois and the only company in its industry making it into Fortune magazine's list of the 100 Best Places to Work in the U.S. Hotels latest Hotel Investor Sentiment Survey (HISS), 65% of US respondents reported their short term investment intention is to buy. When amalgamated a·mal·ga·mate v. a·mal·ga·mat·ed, a·mal·ga·mat·ing, a·mal·ga·mates v.tr. 1. To combine into a unified or integrated whole; unite. See Synonyms at mix. 2. with survey respondents from across the globe, 45% reported their short term investment intention is to buy--the strongest sentiment since September, 2000. The marked increased appetite increased appetite Hyperphagia, polyphagia for owning hotel property across North and Latin America Latin America, the Spanish-speaking, Portuguese-speaking, and French-speaking countries (except Canada) of North America, South America, Central America, and the West Indies. is fostered by a continued rise in both ADR ADR - Astra Digital Radio and RevPAR, along with proven strong comparative returns against other asset classes. Additionally, spiraling construction costs have made most new-build projects less attractive and acquisitions more appealing. The HISS survey, which targets the world's 2,000 largest investors and owners of tourism properties, is the only global survey of its kind. There are 10 buyers for every seller in key urban gateway markets such as San Francisco, Chicago, New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of , Washington D.C., and Hawaii. Across North and Latin America, this figure drops to five buyers for every seller. This environment is reflective of the continued weight of capital and shortage of product in the region. At least 75% of survey respondents want to buy in San Francisco, Pacific Northwest, New York and Hawaii. The strong appetite for these markets has not changed from six months ago. Mexico City outpaced all other cities in the build category, as it did year-to-date in 2004. Foreign capital is likely to continue filtering into Mexico, as positive economic indicators Economic indicators The key statistics of the economy that reveal the direction the economy is heading in; for example, the unemployment rate and the inflation rate. are encouraging both demand and financing. In Latin America, investors have switched their intentions from build to hold. Investor interest in building new hotels remains weak at 8.6%, due in part to the popularity of hotel/residential projects and condo hotels, as the pre-sale of units allows developers to recoup construction costs quickly and obtain attractive financing. Nevertheless, the low investor appetite for building hotels indicates that liquidity and lodging supply will be limited. |
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion