Hotel M&As expected to continue, says JLL
THE FLURRY of hotel-industry mergers and acquisitions seen in 2016, with high-profile deals such as Marriott International’s acquisition of Starwood Hotels & Resorts and HNA Tourism Group Co’s purchase of Carlson Hotels, is likely to continue this year, according to JLL.
“Hotel brands will always look to bolster their supply pipeline and the surest way to grow is often by acquiring operators with management and franchise contracts,” said Lauro Ferroni, senior vice president of the JLL Hotels & Hospitality Group.
He said portfolios with a full range of offerings from service levels to geography are most attractive to investors.
Frank Sorgiovanni, head of research for Asia-Pacific, added: “We expect to see more consolidation among operators and real-estate owners alike due to key players’ need to remain competitive through efforts that align growth strategies.
“Investors from Asia will continue to feature in 2017, with groups from Singapore at the fore. Hong Kong-based buyers with capital connected to Mainland China stand to be active as well.”
