Lodging Econometrics (LE) reports that the hotel industry reached an investment of $21.8 billion in 2013, the highest level since 2009. Last year, 1,171 hotels were sold or transferred, a decrease of 19 percent year-over-year. Average selling price per room was $132,955 based on the 898 hotels that reported figures in the private domain. It was the highest level ever recorded, which LE attributes to low cap rates, improved profitability, a greater availability of lending, and a larger number of upscale hotels in the sales mix.
Publicly traded REITs ( Real Estate Investment Trust) accounted for 30 percent of buying activity, followed by privately held equity funds (27 percent) and hotel companies (15 percent). 2013 “was characterized by near-record-low interest rates, a growing confidence in future operating trends, and the prospect for improved earnings,” according to LE. “It was an opportune time for investors to sell and take profits on their stabilized assets acquired late last decade during the recessionary lows.”
More from OPPORTUNITIES
Hypebeast sells luxury second-hand apparel on Amazon
Hypebeast’s e-commerce business, HBX, is launching an HBX Archives shop on Amazon’s Luxury Stores platform in the U.S., bringing buzzy menswear, …
RIMOWA partners with La Marzocco for limited-edition espresso machine
RIMOWA is expanding its product offerings with a recent limited-edition collaboration with Italian espresso machinery brand La Marzocco. Continuing to push …
The growing potential of chocolate and candy themed hotels
From the chocolate bathroom amenities and chocolate Spa treatments at the luxurious Sacher Hotel in Vienna to Fauchon L'Hotel's in …