�This active year is a sign that the hotel industry is very healthy,� said Mr. Koger. �The past year was outstanding for the industry and associated real estate investment. Prices for hotel assets rose precipitously in 2005 as buyers bid to acquire first-class assets to take advantage of rate and profit growth.� 

Total hotel industry profit growth is anticipated to be around $20.8 billion in 2005 and $25 billion in 2006, heady leaps from 2003�s $12.8 billion and 2004�s $16.6 billion total profits, according to the Hospitality & Leisure Practice of PricewaterhouseCoopers (PwC). 

�Rising hotel industry profits will spur capable operators and cash-flush investors to persist in property acquisition in 2006,� confirmed Mr. Koger.  �We expect 2006 to exceed 2005 in transaction volume.�

According to PwC, the luxury segment will experience the strongest average RevPAR growth of all hotel industry segments through 2007, at an average annual growth of 9.9%. 

�Rates and occupancies are up significantly in every segment compared to just two years ago,� said Mr. Koger. �Upward rate trend is poised to continue. As a result property values are likely to continue their rise as well. Quality assets located in urban and resort markets were subject to competitive bidding over the past year. We anticipate this trend will persist in 2006.�

Mr. Koger pointed out that long-term profit growth for the industry appears probable in light of diminished room supply growth. According to Smith Travel Research (STR), total hotel room growth is calculated to be just 1.2% in 2006, compared to an average rate of growth of 2.2%. STR also predicts an overall 5% increase in ADR, indicating that 2006 is poised to be one of the industry�s best-ever years.

�Existing hotels are in demand,� said Mr. Koger. �That is what we learned during the course of 2005. It was a pleasure to assist our clients in profitable divestment of assets that did not meet their long-term plans and to contribute to the growth of the companies who were successful in acquiring them.

�As a result of favorable market conditions and our depth of investment contacts, brokers at our 11 offices worldwide facilitated 65 transactions in 2005,� said Mr. Koger.

During the course of 2005 the firm expanded by opening offices in San Francisco, Shanghai and Beijing.

For further information about these transactions and current listings, please contact Molinaro Koger at 703.760.9600 or via www.mkhotels.com.
.
.

Molinaro Koger (MK) is an international hotel real estate brokerage, advisory and capital markets firm. The company structures hotel transactions of boutique through luxury market segment assets throughout the world. MK is headquartered in metro-Washington, DC, and has offices in London, Atlanta, Beijing, Chicago, Cincinnati, Dallas, Los Angeles, Phoenix, San Francisco and Shanghai. 

Founded in 1959, Molinaro Koger successfully markets hotel real estate, sponsors limited partnerships, and arranges financing for clients. Given the cyclical nature of real estate, the firm has weathered an array of highs and lows during the course of its 47-year history. Through this time, the company has grown and assisted clients in achieving their investment goals.

�With each lodging real estate cycle we gather strength, expertise and contacts enabling us to better serve the best interests of our clients, regardless of economic cycles,� says President Robert Koger. �The results we achieve are directly attributable to the commitment and expertise of our professional staff.�

Molinaro Koger can be accessed online at www.mkhotels.com.