US Capital Trends | Hotel Report from RCA - NW Hotel Investor : NW Hotel Investor

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US Capital Trends | Hotel Report from RCA

January 23, 2019 7:05 pm

2018 experienced a rebound in hotel deal activity. At $42 billion, volume was up to the 3^rd highest annual pace on record. This was a 50% increase YOY volume change from 2017. The growth in deal volume in 2018 was not driven by one big portfolio or entity level deal. According to RCA’s US Capital Trends | Hotel 2018 report, this “…suggests that buyers and sellers have come to a better understanding of where assets should by price following this transition period.”

The acquisition of LaSalle Hotel Properties by Pebblebrook Hotel Trust was a large entity-level deal, however, these types of transactions were not the only source of growth in deal volume. The largest source of growth (dollar volume perspective) was from portfolio deals (up $8.5 billion from 2017). Again, this was not driven by one specific portfolio sale. Single asset sales volume expanded at 9% YOY in 2018, the second highest annual level on record behind growth in 2015.

Hotel property prices grew a modest 1.6 % for the year. This small growth in price was enough to push prices up for the year to a level higher than the previous peak level prices set in 2007.

Looking at the Pacific Northwest – Seattle, Washington ranked number 17 in the Top 25 Markets with $636.5 million in hotel sales volume (a 41% YOY increase from 2017). This includes 29 property sales, a -3% change from 2017. The average price per unit was $206,014 and the average cap rate was 7.6%.

Portland, Oregon did $390.6 million in hotel sales volume (a 953% increase from 2017). This includes 11 properties, a 120% increase from 2017. The average price per rooms was $211,015 and the average cap rate was 8.1%.

Read the full report: US Capital Trends | Hotels 2018

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I appreciate your service, continued support and marketing effort that you have made on the Redwood Hotel project in Grants Pass, OR. The brochure and marketing information that you have compiled for this property is excellent. I look forward to extending our business relationship.

Don Hayes - Hayes Brokerage, Inc.

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Brian Resendez was my personal broker for the sale of two motels that I sold. One sold in March of 2010 and one sold in March of 2011. In selling these motels he showed great skill and professionalism, which was needed, in order to sell these motels in a down market that exists today. Brian was very aggressive and knowledgeable in getting these motels sold in a timely manner.

Charles C. Hagel - Motel Owner

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Brian and Michelle did an outstanding job selling Bonneville Hot Springs Resort for us. We had requested that our property sale be done in a completely confidential manner so it did not interrupt our daily flow of business. They created beautiful collateral that represented our property very well and kept it current and complete. They made themselves available to tour the property for all interested parties in a non-invasive manner so we could continue to do business without neither guests nor staff being aware of the property being for sale. We would recommend Brian Resendez as a superbly competent realtor to anyone interested in selling their commercial property.

M. S. - Seller

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Our experience with Brian Resendez from SVN Hotels was excellent. Brian not only went the extra mile to make sure we got this deal done, he also gave us honest advice. The process from start to finish was one of the smoothest experiences we have had with an acquisition. I hope to have the opportunity work with Brian and his team on future deals.

S. P. - Buyer

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My experience with Brian Resendez was nothing short of professional. We had a challenging year long transaction and he completely kept me and the process on track and got us all to the finish line. Brian was always a wealth of information above and beyond what was expected. Thank you Brian!

John Holt - Land Investor

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Brian is an outstanding Broker. He is diligent in his service to his clients, and he takes his responsibilities seriously. His connections are very deep in the hospitality industry. Not only does he seem to know everyone, even better, everyone seems to know him. I have won direct business through having Brian introduce me to one of his connections. Now that person is a client our ours as well. Brian is the kind of Broker, and the kind of person, with whom I enjoy doing business.

Mike Grubbe - Business Development Manager at SD Deacon

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It was a great pleasure and experience to work with Brian for our very first property purchase. At times negotiations with the sellers were challenging, but we always found Brian to be super-responsive, professional, and helpful. His office was prompt to communicate with sellers, follow-up with third parties, put together additional documentation, or dig up information. Anything that was needed to keep the ball rolling- Brian and Michelle were on it.

We highly recommend their service, and it will be a pleasure for us to work with Brian and his team when we get our next opportunity.

A. A. - Buyer

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Very difficult deal – estate (foreign beneficiary) and three buyers. Best way to describe it is: “Maze”. But we made it. Brian was instrumental in bringing it together.

Roger Reif - Attorney