Hotel investment volumes will likely cross US$7 billion for the full year 2021, a 15% year-on-year increase, as investors continue to look past the industry’s short-to-medium term headwinds brought on by COVID-19. According to JLL (NYSE: JLL) Hotels & Hospitality Group, healthy transaction volumes will continue into next year, with the industry expected to attract a minimum of US$9 billion in capital in 2022.
In JLL Hotels & Hospitality Group Asia recently published Hotel Investment Highlights 2H21, analysis shows that year-to-date 2021 volumes have totaled US$6.34 billion. Investment in the region has been spread across 127 transactions and 12 countries, representing approximately 21,000 keys. However, average price per key has declined year-on-year according to JLL, decreasing to US$303,000 to $369,000.
