U.S. Broker JLL Sees More Big Money Appetite for Select Service Hotels
Skift Take
Few people have the pulse of U.S. hotel dealmaking as does Kevin Davis of the advisory service JLL. So it's striking that he sees growing investor interest in hotels with limited amenities and staff.
Early Check-In
Editor’s Note: Skift Senior Hospitality Editor Sean O’Neill brings readers exclusive reporting and insights into hotel deals and development, and how those trends are making an impact across the travel industry.Kevin Davis late last year became the Americas CEO of JLL Hotels & Hospitality — an investment advisory firm that has helped trade $83 billion in hotel assets worldwide in the past five years.
Davis said he is seeing more wide-ranging investor interest in U.S. select-service properties, which are hotels without the restaurants, room service, and other amenities of traditional hotels.
Select service has long been a key part of the hotel mix. But it hasn't been a sexy category attracting big money. A more glamorous deal would be Mandarin Oriental's $139 sale of a full-service hotel in Washington, D.C., to Henderson Park, which JLL closed this month.What's changed is that institutional investors and high-net-worth families are now seeing the virtues of select service as assets."There's an increased institutionalization of the select service business, which continues to grow," Davis said. While JLL's core business will remain full-service hotels, it wants to
