CHICAGO, September 22, 2022 -JLL's Hotels & Hospitality Group has released their latest Global Hotel Investor Sentiment Survey, which reveals nearly 80% of investors plan to be net buyers in 2022. JLL surveyed global hotel investors to understand their evolving investment appetite, expectations around the industry's recovery timeline and industry outlook.
Hotel investors expressed a strengthened appetite as fundamentals continue to recover with 20% of investors indicating they will deploy between $501 million to $1 billion+ worth of capital into the hospitality sector, up from 7% of investors in 2021 and 16% in 2020. This is the highest proportion of investors wishing to deploy this level of capital since the pandemic started.
This year's survey showed London, Tokyo and Boston emerged as the top three markets for hotel investment, pointing to the resurgence of investor interest in urban markets. Over the next six months, 57% of investors anticipate the best investment opportunities to emerge across more traditional hospitality property types, including full-service and select-service hotels. Furthermore, 82% of investors indicated that they are targeting value-add investment opportunities, and 34% of investors are interested in vacant possession or unencumbered hotels.
In reviewing the hospitality industry's performance through August YTD, the Americas region benefited from robust demand levels following the end of all testing and quarantine travel restrictions for domestic and international visitors and captured more than 60% of the $42 billion total global hotel investment volume. Activity across APAC and EMEA remained more subdued given ongoing COVID-19 related travel restrictions and the devastating Russia/Ukraine war.
Although the pace of recovery will vary by region, lodging fundamentals are expected to continue recovering, albeit at a more protracted rate given global economic headwinds. Significant pent-up demand for travel and experiences coupled with increasing corporate and group demand will help further drive the recovery. Investor interest in the sector is expected to remain strong with transaction activity picking up in the medium term.
JLL's Hotel Investor Sentiment Survey is the only truly global survey of its kind and has been referenced by the global hotel investment community since its inception in 2000. Responses for JLL's most recent survey were collected From July to August 2022. This survey represents a compilation of 7,800+ data points from hotel investors on future hotel operating performance expectations, yield requirements and future cap rate trends.
JLL's Hotels & Hospitality Group has completed more transactions than any other hotels and hospitality real estate advisor over the last five years, totaling $83 billion worldwide. The group's 350-strong global team in over 20 countries also closed more than 7,350 advisory, valuation and asset management assignments. Our hotel valuation, brokerage, asset management and consultancy services have helped more hotel investors, owners and operators achieve high returns on their assets than any other real estate advisor in the world.
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