Choppy Waters for Hotel Investment

CBRE | August 18, 2016

By Jeanette Rice, Americas Head of Investment Research, CBRE Despite still strong fundamentals in hotel operating performance, the capital markets environment for the hotel sector has been going through choppy waters this year. A brief review of key investment metrics illustrates some of the challenges. Hotel Investment Remains Subdued Tepid hotel investment activity continued in Q2 2016. U.S. hotel acquisitions totaled $6.5 billion in Q2 2016, down 50% year-over-year. Similarly, the H1 2016 total reflects a 55% decline from H1 2015. Fortunately, the year-over-year drop in single-asset purchases was less severe. Buying activity of indiv...