CBRE: Global Hotel Investors Plan to Buy More This Year
CBRE Global Hotel Investor Intentions Survey 2024
Executive Summary
Global Outlook
CBRE Hotels Research is cautiously optimistic about hotel market fundamentals this year, as outlined in our 2024 Global Hotels Outlook report. Following a 33% drop last year, we expect investment activity to pick up in the second half of 2024 due to highly anticipated Federal Reserve interest rate cuts.
Figure 1: Global Hotel Investment Volume & Share of Cross-border Capital
CBRE’s inaugural Global Hotel Investor Intentions Survey of more than 300 investors from the Americas, Europe, Asia-Pacific and the Caribbean casts a positive outlook on global hotel investment in 2024. More than 50% of surveyed hotel investors plan to buy more this year than last, while only 14% expect to buy less. Investors from the U.S., Mexico, Central America and Europe are the most optimistic about increased investment activity.
Figure 2: Investor Intentions for Hotel Acquisition Allocations
Cross-border investment is an important source of hotel capital. Approximately 20% of survey respondents invest cross-regionally. We believe the percentage of intra-regional investors, (i.e., U.K. investments in Spanish or French hotels) is considerably higher. Given the positive sentiment among investors, CBRE Hotels Research expects that the cross-border capital share of total global hotel investment will increase in 2024.
