Report Details How to Enhance Investor Appeal for Next Cycle Uptick
Jones Lang LaSalle Hotels announced today that the firm has published FocusOn: Reposition for an Effective Disposition. The report advises hotel owners on the benefits of implementing a repositioning strategy to enhance the value of hotel real estate. The report also discusses how an owner can exploit the cyclical nature of the lodging industry to optimally time a repositioning strategy to ensure a successful disposition.
“The asset hold period across the Americas is at a five-year high,” said Arthur Adler, managing director and CEO for Jones Lang LaSalle Hotels. Challenging economic times call for a strategic approach to maximizing return on real estate investments. “A savvy hotel investor must clearly understand the strategy and methodology of hotel repositioning in preparation for a successful disposition during the next uptick in lodging fundamentals,” said Adler.
The report illustrates the Model to Enhancing Hotel Real Estate Value through Repositioning, a comprehensive approach to maximizing disposition proceeds via the execution of either one of two repositioning strategies: capital infusion and branding. The successful implementation of these strategies will lead to product differentiation from market competitors, improved operating performance, enhanced investor appeal, an expanded buyer pool and increased transaction proceeds, all of which contribute to a successful disposition of the asset.
“An owner can maximize future disposition proceeds by executing a successful repositioning strategy at the point in the lodging cycle when RevPAR growth is slowing,” said Romy Bhojwani, senior vice president for Jones Lang LaSalle Hotels. “With the current down cycle in the transactions market and declining lodging fundamentals, the next 12 to 18 months represent the ideal time for owners to reposition a hotel asset in anticipation of a market recovery,” said Bhojwani.
