Global hotel deals for the full year are expected to total US$68 billion. The report noted significant growth in foreign investment in the Americas in this period. Total foreign investment in the Americas hotel sector during the first half of 2015 reached US$4.2 billion, an increase of 176% over the same period last year, with US$4 billion of this amount coming from investors from the Middle East and China.
While foreign investment in the Americas continues to grow, it is expected to reach US$68 billion by the end of the year. While U.S. private equity funds remain the largest source of capital flowing into the hotel sector, the first half of 2015 saw a significant increase in deals involving investors from China and the Middle East who committed US$9.8 billion to the global hotel real estate sector compared to US$2.3 billion in the same period last year.
While U.S. private equity funds remain the largest source of capital flowing into the hotel sector, the first half of 2015 saw a significant increase in deals involving investors from China and the Middle East who committed US$9.8 billion to the global hotel real estate sector compared to US$2.3 billion in the same period last year. Key deals in the second quarter of 2015 include Edition New York (US$343 million for ADIA) and Baccarat Hotel & Residences New York (US$230 million for Sunshine Insurance Group).
Major deals in the second quarter of 2015 include Edition New York (US$343 million for ADIA) and Baccarat Hotel & Residences New York (US$230 million for Sunshine Insurance Group).
Cross-border hotel deals in Europe, the Middle East and Africa (EMEA) accounted for the largest share in the first half of the year, totaling US$9 billion. “Portfolio sales are increasingly popular in EMEA, accounting for 65% of total deals in the region, indicating that investors are looking for large deals in an increasingly competitive market,” said Wayne Smith. The portfolio's largest transaction in the second quarter of 2015 was the sale of Maybourne's London portfolio to a Middle Eastern investor for US$2 billion.
Maybourne's largest transaction in the second quarter of 2015 was the sale of Maybourne's London portfolio to a Middle Eastern investor for US$2 billion. <Individual asset deals dominated the Asia-Pacific market, accounting for 82% (US$3 billion) of total deals, with sovereign wealth funds being the most active buyers in Q2 2015. The largest transaction was the sale of 50% of three hotels in Hong Kong (Renaissance Harbour View, Hyatt Regency Tsimshatsui and Grand Hyatt) to the Abu Dhabi Investment Authority (ADIA) for approximately US$1 billion
