Peninsula Owner Buys Klutznick Stake In Hotel
Chicago Real Estate Daily reports: The transaction comes at a time when hotel sales — even between partners — have dried up amid concerns about the recession and scarcity of financing. Nationwide, only 70 significant sales, totaling $1.2 billion, were recorded in the first half of the year, an 85% drop compared with the same period last year, according to New York research firm Real Capital Analytics Inc.
"To put the inactivity in context, the $1.2 (billion) of volume in the first six months of 2009 compares to $4.7 (billion) averaged each month in 2006 and 2007," according to Real Capital’s midyear hotel report.
The last major downtown Chicago hotel sale came in January 2008, when the 297-room Hotel James, 55 E. Ontario St., was sold for $137 million, or $460,000 a room.
Peninsula Chicago hasn’t been immune from the recession, with revenue per available room (RevPAR) falling 37% in the first half of this year compared with the same period in 2008, Hongkong & Shanghai said last month.
View the full article on Chicago Real Estate Daily: Peninsula Owner Buys Klutznick Stake In Hotel
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