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Property market

0.8%

12-month occupancy growth (%)

2.1%

​​12-month ADR growth
(%)​

2.9%

12-month RevPAR growth
(%)

1.9%

12-month supply growth
(%)

Investment market

$8.0

Investment sales (YTD, billions of $US)

78.0%

YTD investment sales growth

6.6%

Average cap rate

-80

12-month change in cap rate (bps)

  • Demand: Q1 2018 operating fundamentals reach new highs, underpinning investor sentiment.
  • Transactions: U.S. hotel transaction volume totaled $8.0 billion, an increase of nearly 78.0 percent relative to Q1 2017.
  • Markets: A majority of the country's major markets experienced positive trailing twelve-month revenue per available room growth as of Q1.
  • Sources of capital: Private equity and foreign investment accounted for 60.0 percent of total hotel transaction volume.
  • Sources of risk: Supply and operating costs remain top of mind.

U.S. Lodging cap rate map


Cap rates sharpen further in the first quarter due to the high profile of assets transacted – both for single-asset and portfolio deals.


Methodology: Cap rates pertain to upper upscale, urban hotel assets and are based on JLL's Hotel Investor Sentiment Survey conducted in December 2017.

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Offshore capital has been a key player in U.S. hotel transactions throughout 2017, accounting for 17 percent of total transaction activity and $2.9 billion in volume through the end of Q3.

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View the complete Q1 2018 U.S. Lodging Investment Quick Look for more on these latest hotel trends.