Hotel Acquisitions in Americas to Increase 25% in 2011, Jones Lang Says

Hotel sales and acquisitions in the Americas will jump as much as 25 percent this year, buoyed by real estate investment trusts and foreign investors seeking to deploy cash, according to Jones Lang LaSalle Hotels.
Transactions may total $13 billion this year, the London- based company said in a statement today. Volume was about $10.5 billion in 2010, almost five times the previous year’s levels, according to Jones Lang.

“Due to additional capital raises, REITs are expected to continue to be dominant buyers in 2011, and private equity groups and institutional investors will increasingly join the mix as leverage levels and terms improve,” Arthur Adler, managing director and Americas chief executive officer at Jones Lang LaSalle Hotels, said in the statement. The U.S. will be one of the most active markets for deals globally, the company said.

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LaSalle bails on Chicago hotel plan

Bethesda-based LaSalle Hotel Properties has sold several floors in a landmark Chicago skyscraper it bought two years ago with the intention of converting it into a luxury hotel and will take a loss on the investment.

LaSalle, through a joint venture named Modern Magic Hotel LLC, acquired 12 floors of the 52-story IBM Building at 330 N. Wabash Ave. in March 2008 from Prime Group Realty Trust for $46 million. It was the majority stakeholder in the joint venture, with Oxford OG Hospitality Chicago holding a 5 percent stake.

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LaSalle buys Hollywood hotel

Bethesda-based LaSalle Hotel Properties has squeezed in one more acquisition this year, capping off a busy year of buying properties.

LaSalle Monday said it paid $38.5 million for the Chamberlain West Hollywood, a 113-room, all-suite hotel on West Hollywood’s Westmount Drive, its fourth hotel in that market.

 

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Jones Lang LaSalle 3Q Profit Up 88% On Higher Revenue

Jones Lang LaSalle Inc.'s (JLL) third-quarter profit soared 88% on revenue and margin growth as well as lower one-time items than a year earlier.
The commercial-real-estate services company's revenue exceeded Wall Street's expectations but earnings were below analysts' estimate.
"We posted solid results in the third quarter, as the broad market recovery continued," said Chief Executive Colin Dyer.
Commercial real estate has suffered from rising vacancies and declining rents and property values, but Jones Lang in July said leasing and capital markets business improved. The company, which provides help with sales, leasing and management of commercial properties worldwide, has swung to the black in recent quarters on strong revenue growth.
Earlier Tuesday, rival CB Richard Ellis Group Inc. (CBG) said its third-quarter profit more than quadrupled on the strongest quarterly year-over-year revenue growth since the end of 2007.

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