Global Hotel Investment Volume Decelerated in 2022

While 2022 was a post-pandemic boom year for hotel demand in much of the world, total global hotel investment volume decelerated slightly to $71.9 billion, a decline of 2 percent relative to 2021. The relative lack of outbound Chinese hotel investment, the Russian war in Ukraine, and recessionary pressures in several markets tamped down the pace of growth.

That’s according to a Global Hotel Investment Outlook report released on Monday by JLL Hotels & Hospitality — an investment advisory firm that helps manage more than $6.8 billion in hotel assets.

A few charts from JLL’s report stand out.

In 2022, global portfolio transactions dropped 27 percent year-over-year, but small trades spiked. The total number of trades reached an all-time high, meaning that the market had a lot of smaller players and a lot of smaller assets being traded, compared with years with large assets and large portfolios shifted hands. CLICK TO ENLARGE.

There’s been much less ross-border investment in hotels than one might expect for quite some time. The five years before the pandemic, 2015 to 2019), saw cross-border hotel investments account for an average of 17 percent of total global hotel investment volume. Yet in that period, the investment declined as a global total year after year. CLICK TO ENLARGE.

Two of the most eye-catching data points from the report are the growing demand for hotel investment from high-net-worth individuals and the growing presence of these individuals in Singapore.

In fact, 16 percent of the year’s global investment volume was generated by first-time hotel buyers, predominantly comprised of family offices and high net-worth individuals. In Singapore, there are now an estimated 700 family offices, more than double the amount pre-pandemic. Expect this trend to continue in 2023 and beyond as lodging demand accelerates.

—Global Hotel Investment Outlook report released on Monday by JLL Hotels & Hospitality 

UPDATE: JLL released the report on Tuesday in sync with the Americas Lodging Investment Summit (ALIS) in Los Angeles.