Hotel Deal Flow Slows

Hotel transactions across the country are still occurring despite trading conditions being significantly impacted by coronavirus, according to JLL Hotels & Hospitality


Key Points:

  • Settled, agreed or exchanged on five hotel assets in Australia since the onset of COVID-19

  • National transaction activity reached $1.9 billion across 43 deals in 2019

  • Forecast for 2020 was $1.3b, now $500m


Hotel transactions across the country are still occurring despite trading conditions being significantly impacted by coronavirus, according to JLL Hotels & Hospitality.


Since the onset of the current crisis, the group has settled on two hotel transactions, the Holiday Inn Melbourne Airport and Ibis Melbourne Little Bourke Street, while also having agreed to terms or exchanged on another three hotel assets in Australia.


JLL Hotels & Hospitality Group Australasia CEO Craig Collins said the three most recent deals- totalling $150 million - all occured at different price points and markets.


National transaction activity reached $1.9 billion across 43 deals in 2019, with the year characterised by a lack of investment grade assets coming to market in the major capitals and higher liquidity amongst smaller assets in metropolitan and regional locations.


The firm's original transaction volume forecast for 2020 was $1.3 billion due to an expectation that the market would become even more tightly held as existing major owners, happy with their investments, continue to hold long term. It has since been revised down to $500 million.

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