"Transaction volume for Canadian hotel real estate reached $1.5 billion in 2018, the 8th highest on record as measured over the past 30 years. Despite a decline in volume from recent years, the appetite for lodging investment remains high with transaction volume tempered as a result of limited opportunities. We expect another $1.5-$2.0 billion of deal volume in 2019, fueled by an up-tick in large single asset and portfolio deals, as well as a healthy mix of mid-market assets in secondary and tertiary markets expected to close this year." MORE
"The strongest markets with double-digit growth were in BC – Vancouver, Victoria and Whistler, and the Mountain Parks – Banff, Lake Louise, and Jasper, with other regions around Toronto also posting large gains." MORE
"There are currently over 17,800 rooms in the UK’s active hotel pipeline expected to open during 2019 and 2020. The figure represents a decrease of over 4,000 from a year ago but still represents one of the largest pipelines in Europe demonstrating the vibrancy of the UK hotel market." MORE
"The most active markets for investment remain Japan (underpinned by the upcoming Rugby World Cup and 2020 Olympics) and Hong Kong, although this has also slowed in recently given the high valuations and relative lack of assets available for sale. The most active markets for development are those that typically have higher land prices and where yields remain high. These tend to be in more emerging destinations such as Vietnam, Indonesia and Thailand." MORE
"Addis Ababa is the most promising market in East Africa today due to its long term economic prospects. Nairobi is recovering from saturation yet with sound tourism fundamentals, whilst Dar es Salaam is experiencing continued subdued trading. Kampala and Entebbe are high growth nodes to focus on whilst Kigali is seeing demand growth but needs more time to absorb recent openings." MORE
GHN Hotel Market Watch
GlobalHotelNetwork.com asked its Advisory Network "where do you see the best opportunities for hotel investment or development?" Over the next several weeks, we will be publishing their insights. Here are perspectives from Canada, UK, Asia and Africa.
- Alam Pirani, Executive Managing Director, Colliers International Hotel, Canada;
- Carrie Russell, AACI, MAI, RIBC, ISHC, Senior Managing Partner at HVS, Canada;
- Robert Barnard, Partner, BDO UK & Juan A. Gómez García, Hotel, Leisure and Tourism Research Manager, BDO UK LLP;
- Govinda Singh, Executive Director at Colliers International, Singapore; and
- Xander Nijnens, Executive Vice President, JLL Hotels and Hospitality, Sub-Saharan Africa.