Resort Sector Gains Momentum

LOS ANGELES-Research from Jones Lang LaSalle shows that the resort sector has made significant recovery strides this year. Overall, the resort sector accounted for 18.4% of the total investment transactions in the hospitality market, raking in $2.46 billion by August 2013, the highest volume since 2007.

Increased investor attention is the result of the industry’s record-breaking revenue-per-room-available numbers, averaging $102.99, and the near-record occupancy rates. While new resort development remains stagnant, existing resorts are left to benefit from growth in the market. “These factors are pushing down cap rates on existing well-positioned, cash-flowing resorts as competition increases,” says Art Adler, Americas CEO of Jones Lang LaSalle’s Hotels and Hospitality Group. “The steady improvement in the market will result in a lengthier and more robust up-cycle, providing new owners with significant runway of strong operating performance.”