Despite uncertainty in global markets, the hotel investment sector will continue to generate interest among a range of investors. This is the assertion of a new report published by Jones Lang LaSalle Hotels, entitled FocusOn: Market Volatility Impact on Hotel Transactions. The firm stresses that the mid to long-term outlook for this asset class is strong, due to the underlying fundamentals.

Meanwhile, the study cites three reasons that transactions in the hotel sector will pick up, despite a currently experiencing a slow period. These include increased interest from private equity investors and greater restrictions in the supply pipeline. In addition, assets boasting strong in-place cash flow or value-add opportunities will garner attention from those looking to plough some money into the hospitality industry. Robert Webster, managing director for Jones Lang LaSalle Hotels, commented: The recent market disruption will provide an opening for opportunity funds, value-added funds, core-plus funds and private international asset collectors to compete for top-tier properties.

A study published this week by US Realty Consultants claimed that both limited and full-service hotels have seen a strengthening of their investment parameters during the first half of 2011, with the organisation predicting further growth in the sector over the coming months.