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News Release

London - Moscow

Global Hotel Investment Levels up 53% Year-on-Year in Q1 2010

According to Jones Lang LaSalle Hotels


London - Moscow, 5 May 2010 – The global hotel investment market experienced a strong start to the year with first quarter transaction volumes reaching $2.8 billion, a 53% increase on the $1.8 billion transacted in Q1 2009. Europe, Middle East and Africa (EMEA) remained the most active region recording $1.1 billion of hotel sales, a 46% year-on-year (y-o-y) increase for the same period, while the Americas and Asia Pacific regions recorded Q1 sales worth $991 million (+70% y-o-y) and $736 million (+43% y-o-y) respectively.

Arthur de Haast, Jones Lang LaSalle Hotel’s Global CEO, said: “With a more positive investor sentiment for hotel real estate assets, transactional activity has accelerated significantly since the start of the year. As the global credit markets have begun to ease there is a greater weight of capital targeting the market for acquisition opportunities. We have also witnessed a noticeable increase in stock being offered to the market with increased sale activity from banks and other lenders who have taken control of more assets over the last year in an attempt to reduce their hotel loan portfolios.”
Maintaining the trend from 2009 institutional investors have remained the most prolific investors across EMEA, seeking assets in secure Western European markets with stable incomes, and were responsible for more than a third of buying activity in the region.

In the Americas investor interest remains strong from domestic buyers but also international groups, who accounted for 34% of all transaction during Q1 2010. With the recovery in public markets, US-based REITS are also becoming increasingly acquisitive and purchased more than $441 million worth of hotels during the first three months of the year.

Asia-based conglomerates and high net worth investors continue to dominate activity in Asia-Pacific, accounting for almost half of all transactions undertaken during Q1 2010. Investor interest is very strong in Australia and Japan within the region – in the first three months of the year both countries recorded more than $350 million worth of hotel sales. 

De Haast concluded: “The global hotel investment market during 2009 was plagued by a deficient debt market and a lack of quality stock, but the start of 2010 is already showing healthy signs for transactional activity, which should set the tone for the remainder of the year.  While buyers and lenders remain cautious, funding is increasingly available for the right deals and coveted prime assets in key gateway cities are becoming more available driven partly by the sale of individual hotels by the banking industry, but also a better balance between buyer and vendor expectations on pricing.”
 
 
 
About Jones Lang LaSalle Hotels
Jones Lang LaSalle Hotels, the first and leading global hotel investment services firm, is uniquely positioned to provide the depth and breadth of advice required by hotel investor and operator clients, through a robust and integrated local network. In 2009, Jones Lang LaSalle Hotels provided sale, purchase and financing advice on over $1.6 billion worth of transactions globally relating to 79 assets. In addition, advisory and valuation services were provided on more than 700 assignments.
The global team comprises over 200 hotel specialists, operating from 36 offices in 19 countries. The firm's advice is supported by a dedicated global research team, which produced over 80 publications in 2009 in addition to client research. Jones Lang LaSalle Hotels' services span the hospitality spectrum; from luxury single assets and large portfolios to select service and budget hotels, resorts and pubs. Their services include investment sales, mergers and acquisitions, capital raising, valuation and appraisal, asset management, strategic planning, operator selection, management contract negotiation, consulting, industry research and project development services. Jones Lang LaSalle Hotels' clients have access to the resources of its parent company, Jones Lang LaSalle (NYSE: JLL). http://www.joneslanglasallehotels.com
 
About Jones Lang LaSalle
Jones Lang LaSalle (NYSE:JLL) is a financial and professional services firm specializing in real estate. The firm offers integrated services delivered by expert teams worldwide to clients seeking increased value by owning, occupying or investing in real estate. With 2009 global revenue of $2.5 billion, Jones Lang LaSalle serves clients in 60 countries from 750 locations worldwide, including 180 corporate offices. The firm is an industry leader in property and corporate facility management services, with a portfolio of approximately 149 million square meters worldwide. LaSalle Investment Management, the company’s investment management business, is one of the world’s largest and most diverse in real estate with approximately $40 billion of assets under management.
In Russia and CIS Jones Lang LaSalle have offices in Moscow, St. Petersburg, Kiev and Almaty. Jones Lang LaSalle, Russia was voted Consultant of the Year in 2004, 2006, 2007, 2008, 2009 and 2010 at the Commercial Real Estate Awards, Moscow and Consultant of the Year at the Commercial Real Estate Awards 2009, St. Petersburg. For further information, please visit our Web site http://www.joneslanglasalle.ru