May 2 – More hotel owners are trying to increase capital through an outright or partial sale of property or through joint ventures and combination of additional supply, according to a study by Jones Lang LaSalle released yesterday. The study said that there has been construction of a large number of hotel and hospitality related developments despite the fact that the global economic downturn caused may projects to be delayed or cancelled.
The supply pipeline in the region is still substantial; it is expected the region’s hotel room supply will increase from 640,000 rooms to 730,000 rooms between 2010 and 2015. The Jones Lang LaSalle report said investors are becoming more focused on secure, predictable income streams and are more accepting of new realities and market conditions. This change helps the hotel sector which offers a range of income producing assets. Other signs that the hotel market is maturing are improvements in standards, branding, regulations, consistency, and segmentation.
