According to a JLL Hotels & Hospitality Group report, the bullish hotel mergers and acquisitions activity in 2016 will continue in 2017. That’s good news for people looking for vacation homes. The acquisition of the Starwood Hotels & Resorts by Marriott International in 2016 is just the beginning, according to executives with the JLL Hotels & Hospitality Group. The Asian HNA Tourism Group Co. was also active in 2016. That group bought the Carlson Hotels. Asian investors are leading the hunt for profitable real estate ventures.
Chinese investors are looking for real estate investments in vacation location around the globe. The Chinese are especially interested in hotel real estate deals in Europe and in the United States. The Japanese and the Australian real estate market are also targets for Chinese investors. But Hong Kong, Singapore, Vietnam, and Thailand are also hot real estate investment markets. Those countries continue to produce record-breaking tourist numbers. Singapore hit an all-time high in tourism in 2016, and 2017 will be another big year. Malaysia, Myanmar, and Cambodia are also big hotel investment targets in 2017.
The hotel industry will continue to search for creative partnerships in Asia and in other parts of the world. The Caribbean is another hot spot for hotel and real estate expansion. Islands in the Caribbean are turning a new page in the real estate market. St. Lucia and St. Martin villas are in demand. Hotel chains are not going to ignore the fertile Caribbean tourist and vacation market.
But it’s not just the warm weather countries that will experience a real estate investment boom in 2017. Homebuyers are investing in ski vacation homes in Europe and in the United States, according to global real estate executive, Kate Everett-Allen. Buyers are keeping their eyes on planned investment projects in 2017, and they are placing more value on the liquidity of those assets. The location and the price of a vacation ski home determine the desirability and the future selling price.
Ski vacation homebuyers have a greater interest in the plans and the strategy of major resort owners. Homebuyers want to buy homes in resorts that have luxury retail shops, better lift service and have a major hotel on-site that will attract tourists. More tourists produce fewer down periods and higher rentals. More tourist activity also increases the value of rental property in a shorter period of time. Better ski and non-ski infrastructure in these resorts is part of the payoff for vacation home investors.
According to real estate experts and large hotel chains, vacation home buying is the way to go in 2017. The thrill of owning a vacation home in a hot or cold weather area is not just about the immediate return. It’s all about the five or ten-year return. Vacation investments will appreciate as more people have the funds to buy a piece of the good life. But there are challenges to face, and those challenges should be part of the initial decision-making process.