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Global Hospitality investment

Updated: 5 days ago

An overview of hospitality investment market, for last year performance and outlook for 2022

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In the latest research releases related to commercial real estate markets, we can learn about hospitality real estate investment activity for last year and what drives investors dollars strategy for 2022, from two of the most prominent players in commercial real estate transactions.


The global lodging industry demonstrated its resilience in 2021, following the drastic and immediate shock demand observed in 2020 with the onset of the COVID-19 health crisis. In 2022, the make-up of demand and the progression of the recovery will continue to be top of mind for hotel owners, operators, and investors.

After two of the most challenging years in the modern times where the world has faced a global health pandemic, Travel and Tourism has been one of the most affected industries in the economy due to government imposed restrictions. As the wave fades out and traveler confidence is back in people's minds, we can already see a promising begging of the year.


Q4 volume in all three regions-Americas, EMEA and Asia-Pacific-surpassed 2019 levels, with the Americas and EMEA setting record levels.

Key figures

-hotel investment transactions volume have accelerate to 66.8$ billion in 2021, out of a total of 1.3$ trillion in global commercial real estate investments last year

-Americas region full-year #transaction #volume reached 43$ billion, which represents a 238% increase from 2020 level

-in EMEA region the #hotelsector showed signs of #recovery in Q4 2021, with a 76% year-over-year increase in investment volume to 20$ billion

-Asia Pacific total investment volume was 6$ billion in 2021 representing a 7% short from 2020 level


Transactions trends

Hospitality Insights have recently launched a new research, called transaction tracker which looks at the private real estate market for hospitality assets. In January were recorded 49 transactions with a total value of 4.1$ billion with more than half happened in USA.

Among the buying companies we can note Sterling Real Estate Partners, Starwood Capital Group, Reliance Industries, Alphabet and CBRE Global Investors. As of selling companies involved in these transactions, we note Santander Asset Management, Investment Corporation of Dubai and East Capital Group.

Assets transacted were prominent hotel brands like Mandarin Oriental, New York, USA, AC Hotel by Marriott Nice, France or The Standard Spa, Miami Beach, USA/


Takeaways

#Hotelowners, #operators, and #investors will continue to monitor the #progress of travel #demand and the road to recovery in 2022, on the context of regional and global events that can have an impact on travel.

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