The hotel sector closely follows the trends discussed in the overview for all property types. As lender and public REIT portfolios grow, equity fund and private sector portfolios shrink. Public REITs acquired just two significant hotel properties in 2009 but have already acquired or committed to buy 33 properties this year with newly minted REITs responsible for most of this acquisition spree.

Lenders and public REITs have both reached just under $1.0 billion in net additions year-to-date. Lenders are currently poised to match, if not exceed, their 2009 portfolio additions. Equity funds had less than $1.0 billion in dispositions, which outweighed acquisitions resulting in a net decrease in holdings. At the peak of the cycle, equity funds added $32.1 billion to their portfolios. This year they are well on their way to reaching last year’s net decrease of just over $500 million.

Private buyers' acquisitions were just under $1.0 billion. But with over $3.0 billion in dispositions their net change to portfolio holdings is the largest decrease of the all investor types for hotel properties. Foreign buyers are increasing involved in recent hotel transactions, but to date, net acquisitions have been flat.

Data subject to future revision; based on properties & portfolios $5 mil and greater.
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