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2015 boasts highest levels of foreign investment into hotels

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The year 2015 is already well on its way to new highs of foreign investment into hotels, JLL reports, with large global deals contributing to levels of investment surpassing expectations. 

Record levels of foreign investment

Recent data released by JLL Hotels and Hospitality Group reveal that the first half of 2015 saw US$42 billion of foreign investment into hotels. This was spearheaded by investment from the Americas as well as Europe, the Middle East and Africa.

JLL's research also notes that the Americas experienced the highest volumes of deals, with a total of US$24 billion, up 73 per cent year-on-year.

Who's contributing to these levels?

Foreign investment into hotels in the Americas reached US$4.2 billion, an exponential 176 per cent increase from this time last year. These high rates are largely due to foreign investors from Mainland China and the Middle East, who contributed US$4 billion, skyrocketing their investment status from last year's figures by 308 per cent.

Europe, the Middle East and Africa received the largest amount of foreign hotel transactions at US$9 billion, and also boasted the largest portfolio sale.

London's luxury hotel operator, Maybourne, sold its portfolio to a Middle Eastern investor for US$2 billion, making the sale the largest one in 2015 so far.

Cross-border investment in hotels trending in 2015

This confirms findings claiming that the Middle East is playing a key role in the global real estate market, despite concerns that recent international economic issues would discourage investment.

This sentiment is echoed by the CEO of JLL, Mark Wynne Smith.

"One of the biggest trends of 2015 is the surge in Middle Eastern and Mainland Chinese investment into hotels globally. This is despite some underlying concerns across the globe, such as the Greek debt crisis and the recent fluctuations in the Chinese stock market," he said.

These figures indicate that foreign buyers have been carefully appraising past investments in order for 2015 investment levels to sit at such high levels. 

Date Published: 21 Aug 2015
Category: General News

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