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Property market

0.9%

Year-to-date occupancy growth

2.1%

​​Year-to-date RevPAR growth​

3.0%

Year-to-date supply growth

1.8%

Year-to-date ADR growth

Investment market

$24.0

Investment sales (2017, billions of $US)

-18%

2017 investment sales growth

7.3%

Average cap rate

flat

12-mo change in cap rate (bps)

  • Demand: Q4 2017 sees acceleration in operating fundamentals pushing investor confidence more positive.
  • Transactions: Transaction volumes decline by 18.0 percent in 2017, resulting from a decrease in purchases by off-shore investors and fewer portfolio transactions.
  • Markets: Elevated new supply dampens growth in major markets, while Houston and Orlandoare each observing double-digit increases in revenue per available room.
  • Sources of capital: Following 2016 where a record 43.0 percent of volume stemmed from off-shore investors, buyer pool wasmore domestically-driven in 2017.
  • Sources of risk: Supply risk remains top of mind; however, the construction cycle appears to be cresting.

U.S. Lodging cap rate map


Hotel cap rates held firm in 2017 but are expected to see some widening in 2018.


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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Foreign investors pile into U.S. hotels

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 H2 2017 U.S. Lodging Investment Outlook for more on these latest hotel trends.