Hotel investors tiptoe back into buying game
Washington Business Journal reports: Want to buy a hotel? 2010 may be just the time.
Hopes for an economic turnaround are prompting some hotel investors to get back in the long-dormant acquisition game, laying the groundwork for what could prove to be an active acquisition market next year.
Through the third quarter, national hotel sales volume was $2.1 billion, with 123 hotels sold, according to Peter Slatin, editorial director of New York-based Real Capital Analytics Inc., which tracks commercial real estate trends. That’s 75 to 80 percent of last year’s volume, Slatin said.
Just two hotels have been sold in D.C. so far this year — the Embassy Inn and the Windsor Inn — for a total of $11.25 million. Six were sold in the Maryland and Virginia suburbs for an additional $77.9 million.
In 2008, four hotels were sold in D.C. for $301.5 million and four others in the suburbs for $122.6 million.
Nationally, Real Capital Analytics is currently tracking about $30.2 billion in distressed hotel assets. Of those, the only D.C. hotel is the Watergate — it was bought out of foreclosure by its lender in July. Also being tracked are 30 others in the region.
“Investors are smart enough to know if they just wait until the desperation point, they will be able to get good assets,” Slatin said.
View the full article on Washington Business Journal: Hotel investors tiptoe back into buying game
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