The hotel investment markets is in neutral. The first-half transaction volume was $24.5 billion, a 17.5% drop from the previous year and a 31% decline from 2019 levels. Who are the main culprits in this? High debt and a shaky demand trend.
JLL’s “Global Hotel Investment Trends”, the latest report that it will publish, shows that total transactions dropped by 16% over the past year to 600 deals.
Hotel projects of all kinds showed weakness, showing how far the capital has retreated.
Investors retreat from larger deals
Hotel investors were ruthless in their selection. This resulted in a record number of purchases of individual assets, as opposed to the usual acquisitions of entire ports.
