Middle East hotel investment market sees strong growth in 2010

27/10/2010 - Dubai Property News
Middle East hotel investment market sees strong growth in 2010

Posted by Bob Brunskill

The EMEA (Europe, Middle East and Africa) hotel investment market has demonstrated strong growth in the first three quarters of 2010 to reach €3.97 billion, Jones Lang LaSalle has found.

According to the property specialist, investment volumes across the EMEA sector now represent a 55 per cent year-on-year increase against the €2.5 billion transacted between Q1 and Q3 in 2009.

In addition, Jones Lang LaSalle Hotels said that growth accelerated further during Q3 2010 with €1.8 billion transacted across EMEA - a significant 70 per cent increase on Q3 2009 levels of €1.056 billion.

Mark Wynne Smith, chief executive officer for EMEA at Jones Lang LaSalle Hotels commented: "We currently have a reasonable balance between the number of buyers and the stock of hotels on the market. We have also seen a number of distressed sales complete which has given us a good sense of how buyers price when they have a highly motivated seller."

The group said that based on its findings, it has adjusted its 2010 transaction volume projection by €1 billion to €5.5 billion, which would represent an increase of more than 76 per cent compared to 2009 (€3.12 billion).

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