Global lodging industry demonstrates resiliency with a 131% increase in transaction volume; JLL’s latest Hotel Investment Outlook report outlines expected trends as the market continues to recover

 

Gilda Perez-Alvarado

CHICAGO, IL – After a turbulent 2020 the hotel industry saw an acceleration into recovery in 2021, which is projected to continue, despite operational hurdles and inflationary pressures, in 2022.

 According to JLL Hotels & Hospitality’s annual Hotel Investment Outlook, the industry’s recovery has presented new trends for hotel owners, operators, investors and consumers in 2022.

 The Global Outlook

 Global transaction volume totaled $66.8 billion in 2021, a 131% increase from 2020. The Americas was the most liquid region and accounted for nearly 60% of global hotel transaction volume.

  This level of activity marked not only a 269% increase in volume over 2020 but also a 32% increase relative to 2019 activity.

With demand’s uneven recovery across asset classes, investors focused on acquiring luxury or resort assets.

 Assets situated in urban locations remained the most liquid, but the level of activity in 2021 was down 22% from 2019 levels. However, sales activity across assets in resort locations represented a 17% increase compared to 2019 levels.

 Buyer pools diversified in 2021 with private equity groups increasing their investments in hospitality by $25.4 billion over 2020 levels, representing 50% of all transaction activity globally.

“Consumer’s insatiable appetite for experiences, travel and hospitality is fueling unprecedented levels of demand,” said Gilda Perez-Alvarado, Global CEO, JLL Hotels & Hospitality.

  “This, coupled with a relatively muted supply pipeline across major gateway markets, will enable the lodging industry to recover earlier than anticipated, making the sector a great investment opportunity.”

 CONTACT:

Cierra Lacasse

 JLL Associate

 Public Relations

Phone: +1 602 648 8701

Email:  Cierra.Lacasse@am.jll.com