�We tracked 118 major transactions in all of 1999, and predicted the number to be comparable for 2000,� Hennis states.  �There were few sales during the first quarter of 2000, primarily due to fears relating to Y2K and interest rates.  However, hotel transactions picked up considerably in the second quarter.  Also as anticipated, the per-room sales price remained strong through the first half of 2000, albeit lower than last year�s record high price per unit of $142,000.�

In 1999, roughly $4.7 million was spent on major hotel acquisitions.  Through June of 2000, major hotel acquisitions already totaled more than $3 million.  �Last year, premium asking prices, coupled with market fears, caused many properties to go unsold,� Hennis adds.  �Once January 1st  passed by smoothly, and performance data was released, hotel buyers began to emerge once again, as asking prices tapered to a more realistic level.�

Portfolio sales accounted for more than half of the major transactions that have occurred this year.  In 1999, portfolio transactions were not as prominent.  As anticipated by HVS in last year�s survey, the portfolios primarily consisted of limited-service properties.  Most full-service properties changed hands in individual transactions.

Leading the list of major buyers of hotels through the first half of 2000, based on the number of acquisitions, are: Barcelo USA, CNL Hospitality Properties, Hospitality Properties Trust, and joint ventures between Finova Group and Pitney Bowes, and Milestone Investments and Regency Hotel Management.  The Hampstead Group, Marriott International, Prime Hospitality, Starwood Hotels & Resorts Worldwide, and Wyndham International are the major sellers thus far in 2000.

The sales of the Desert Inn, the Westin St. Francis, and the Marriott Chicago Downtown were the highest for overall price, while the sales of the Four Seasons Biltmore in Santa Barbara and the Sutton in New York had the highest prices per unit through midyear.

HVS is currently tracking more than 30 properties with sales pending and at least another 30 properties that are on the market. � Despite some concern regarding supply growth in certain markets, the general outlook for the lodging industry is positive,� Hennis points out.  �Companies are focusing on management and technology issues, which should increase profits over the long-term, and consequently make hotels more attractive to investors.� 

HVS International was created in 1980 to satisfy the growing demand for reliable and well-documented hotel market studies and feasibility reports.  With eleven offices worldwide, HVS offers a vast range of services including valuations, strategic analyses, development planning, litigation support, executive search, waste management, gaming and restaurant consulting, asset management, operational and management strategy development, and timeshare consulting services.