Hotel Industry Analysis: The State of the Global Hotel Industry in 2015

Published On May 5, 2015 | By Carey Dotson | Business

The global hotel industry has recovered strongly from the recent economic downturn that has affected much of the world. The latest hotel industry analysis points to hotels across the world performing strongly, with increasing tourist numbers leading to higher room rates and strong revenue growth. This has also meant increased investment in hotels, with record-breaking levels of transactions being made in recent years.

Hotel Industry Analysis: The Current Market

Recent market research by Ibis World shows that the hotel industry is currently performing extremely well – and it’s a trend that is set to continue, with the industry being expected to “excel” over the next five years. Annual growth in the industry stood at 5.3% in the five years to 2014, with revenue standing at around $717 billion.

It is easy to see that certain regions in the world have very strong tourism and hospitality industries. One example of this is Dubai, with the huge increases in visitor numbers over the last few years leading to massive success for hotels in the emirate. Figures reveal that revenues generated by hoteliers in Dubai rose by almost 11% during the first half of 2014 to $3.47 billion, whilst there has been rises in room rates, occupancy rates and average length of stay.

Indeed the Jones Lang LaSalle Hotel Intelligence Report 2014 revealed that Dubai is the UAE market leader, with the tourism and hospitality market within the region expected to achieve positive and stable growth during the next five years. It is for this reason that the Dubai hotel industry is considered by many to be one of the most profitable and promising in the world, which makes it an ideal candidate for hotel investment.

Hotel Industry Analysis: The Rise of Hotel Investment

The strong performance of hotels across the world has lead to the rise of hotel investment. 2014 was a record year for this, with around $59 billion being invested into hotels around the world – and it seems that it’s a success story that’s set to continue. The latest hotel industry analysis by property consultants Jones Lang LaSalle shows that global hotel transactions are expected to reach $68 billion in 2015, with the year already getting off to what it calls a “flying start.”

Hotel investment is a growing trend across the world, with more and more investors becoming aware of the potential rewards that can be gained from investing in hotel assets. JLL figures show that hotel property transactions amounted to just $11 billion 2009, with the figure rising consistently each year. In 2010 the figure more than doubled to $28 billion, whilst by 2013 it had reached a staggering $52 billion.

Hotel Industry Analysis: Conclusion

The global hotel industry appears to be on the up – and this means great news for investors who are looking to profit from the industry. Investing in thriving hotel markets like Dubai brings the potential for investors to achieve extremely attractive returns.

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