Hotel Motel Market – Investors Back
The hotel / hospitality sector is booming in the second quarter with more properties coming onto the market as a response to capital seeking hotel investment with private equity funds, institutional buyers plus other types of buyers joining REITs in the competitive quest for lodging assets.
The pace has accelerated in recent weeks with preliminary data showing $4.21 in hotel assets have sold or gone to contract in 132 transactions since April 1st of this year. A dozen of those deals have been for $100,000,000 or more.
The market has become very competitive as the depth of the buyer market has increased and includes REITs, investment funds, insurance companies, pension plans, private equity and offshore buyers.
First quarter transaction volume was 109% up over Q1 2010. Occupancy is up and starting to push room rates up.
CoStar News – Investors Jump Back Into Rebounding Hotel Market