Hotel Sales Outperform as Travel Picks Up
Thursday, September 09, 2010
Source: Bloomberg
Bloomberg reports: Sales of hotels spiked in the first half of 2010, according to Real Capital Analytics, rising by 136% compared to the same period one year earlier. Sales of hotels totaled $3.2 billion in the first half of 2010, up from just $1.4 reached over the same period in 2009. Though in absolute dollar volume sales of hotel properties remain relatively low compared to other property types – including office and apartment assets – and to the sector’s own historical volume, hotel’s one-year rise has clearly outpaced comparative increases for any other sector. In comparison, office and apartment sales rose by 82 percent and 51 percent, respectively over the same one-year period.
Using Real Capital’s data trends as a starting point, Bloomberg contributing author Nadja Brandt identified potential reasons for the remarkable rise in hotel sales over the past two quarters. These include a “rebound in business and leisure travel” underway in the US, and the ability of hotel owners to instantly boost rates and “take advantage of economic growth” – a feature unique to hotel properties, as other sectors dependent on long-term leases can be slower to react to an economic recovery.
Bloomberg’s Brandt also provided some insight into recent hotel sales, hotel operator and owner profits (which have been beating economists’ estimates), and the growing trend of real estate investment trusts buying hotel assets. For the latest on the hotel sector’s trends and analysis, please see the full article on Bloomberg and Real Capital Analytic’s weekly online publication, US Capital Trends.
View the full article on Bloomberg: Hotel Sales Outperform as Travel Picks Up
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Posted by: Nina Turner