Hotel Business / April 21st, 2017
Hotel Business reports: Transaction volume in the hotel sector fell 7% year-over-year in January, according to a U.S. Capital Trends report by Real Capital Analytics. However, what happened in January is part of an ongoing story.
“We’ve seen commercial deal property down overall in 2016 and early 2017. Other property types started to see falling deal volume in 2016 due to changes around financing transaction…and there’s the story of price adjustments,” explained Jim Costello, SVP, Real Capital Analytics. “You had in the six major markets of the United States new supply coming in and new hotel construction causing concern for investors. The new hotel supply might undermine performance with fears of rising interest rates. They weren’t as willing to buy properties at the prices that sellers wanted. Volume fell and cap rates increased.”
View the full article in Hotel Business: Real Capital Analytics Releases U.S. Capital Trends Report