JLL: Hotel Investors Start 2023 With Record Sales

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CHICAGO– Despite a downturn in sales in the 2nd half of 2022 due to dislocation in the financial obligation markets, hotel financiers have actually begun 2023 with record sales for properties in growing and preferable markets, according to JLL’s Hotels & & Hospitality Group.

A current example of these deals consists of the sale of the Diplomat Beach Resort in Hollywood, Florida, which was the third-largest single-asset sale in U.S. history. In addition, the current closing of the air conditioner hotel Phoenix Biltmore set a record price-per-key for high end select-service properties in the Phoenix market. Both markets reveal population and market development in addition to market principles for hospitality and tourist.

” Miami and Phoenix are 2 terrific examples of growing markets where year-end 2022 RevPAR has actually far surpassed 2019 efficiency by 24 percent and 19 percent, respectively,” stated Melvin Chu, executive vice president, JLL Hotels & & Hospitality Group. “Other top 25 markets that we are seeing comparable efficiency and deal patterns consist of Tampa, San Diego, Orlando, and Orange County.”

According to Kevin Davis, Americas CEO, JLL Hotels & & Hospitality Group, “Investors are purchasing into the thesis that long-lasting development patterns in particular markets will surpass near-term capital markets dislocation. As an outcome, these financiers want to purchase cap rates that are lower than the expense of financial obligation since the development story is so engaging.”

” Pricing for core and core plus hotel financial investments have actually held up exceptionally well in spite of volatility in the capital markets,” included Chu. “We’re seeing REITs and high net worth household workplaces step up by leveraging their strong balance sheet and relationship lending institutions to stay active financiers of exceptionally premium realty.”


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