Market Trends in Hotel Investment

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NATHIC
Image: nathic.com

As founder of Pinnacle Hotels USA, Dr. Bharat Lall has led hotel investments for more than 26 years. Bharat Lall, MD, makes all company investment decisions with a ocus on market performance and timing.

In late 2015, cautious optimism emerged as the key concept of hotel investment. An analysis of major hotel sales in the third quarter revealed a total of 49 single-asset sales valued at more than $10 million per transaction and $204,000 per room. This marks an increase in total trades and a decrease in both volume and per-room price. Supply and demand remains positive, though investor focus on latter-stage processes has turned the overall focus to supply while demand continues to decelerate.

Capital does continue to flow into the U.S. hotel market, though much comes from foreign investment. Perceived stability of the U.S. economy and weak prospects in other markets have led to a boom in foreign direct investment, to the degree that this system formed the focus of the 2015 North American Tourism and Hospitality Investment Conference. Experts believe that although growth has eased within the sector as a whole, it remains strong enough to attract both domestic and foreign investments.

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