Executive Summary
Global Outlook
CBRE Hotels Research is cautiously optimistic about resort market fundamentals this yr, as outlined in our 2024 Global Hotels Outlook report. Following a 33% drop final yr, we anticipate funding exercise to choose up within the second half of 2024 because of extremely anticipated Federal Reserve rate of interest cuts.
Figure 1: Global Hotel Investment Volume & Share of Cross-border Capital
CBRE’s inaugural Global Hotel Investor Intentions Survey of greater than 300 traders from the Americas, Europe, Asia-Pacific and the Caribbean casts a optimistic outlook on international resort funding in 2024. More than 50% of surveyed resort traders plan to purchase extra this yr than final, whereas solely 14% anticipate to purchase much less. Investors from the U.S., Mexico, Central America and Europe are essentially the most optimistic about elevated funding exercise.
Figure 2: Investor Intentions for Hotel Acquisition Allocations
Cross-border funding is a vital supply of resort capital. Approximately 20% of survey respondents make investments cross-regionally. We imagine the share of intra-regional traders, (i.e., U.Ok. investments in Spanish or French lodges) is significantly greater. Given the optimistic sentiment amongst traders, CBRE Hotels Research expects that the cross-border capital share of whole international resort funding will enhance in 2024.