National Hospitality Market Update…
AUGUST 2013
- Hotel sales have increased significantly compared to July and this time last year. The total sales YTD are up to $2.1 B, concentrated mostly in the full-service sector. Limited service properties are the lowest they have been in monthly sales for this year. The momentum in full-service transactions will continue with an estimated $3.4 B in contract.
- Hotel prices, compared to other property types, are furthest from the peak levels. This may be a result of the levels of active buyers being about half of its peak level in 2007. Granted, the number of active buyers has doubled since 2010.
- The commercial real estate market, in general, has seen a major rise in active buyers, about 3,000 active buyers, most being from the private sector. Bob White, Founder and President of Real Capital Analytics, notes that these buyers seem very well capitalized and this will help build resilience in the market.
- Hotel acquisitions from private investors has increased from 33% to 41% over the past year.
- Foreign capital into US real estate has been strong in 2013, with hotel acquisitions accounting for 12 % of transactions. The foreign capital coming from Asia is rapidly increasing, with most buyers investing in assets between $5-10 M.
- Year-To-Date: Portland leads Seattle in volume of sales, $224.4 M to $151.2 M.