CBRE Expects RevPAR Growth to Improve in H2 2024, Driven by Holiday and International Travel
CBRE Group, Inc. | May 16, 2024
Paramount Lodging Advisors Successfully Transacts Chicago Renaissance OHare Hotel
Paramount Lodging Advisors | November 7, 2023
Real Estate
Q2 2024 Major U.S. Hotel Sales Survey
Daniel Lesser | July 22, 2024
By Daniel H. Lesser Despite the Federal Reserve’s aggressive monetary policy aimed at controlling persistent inflation, during the first half of 2024, the U.S. economy continued to demonstrate resilience. While strong growth in many subcategories of Gross Domestic Product (GDP) including consumer and government spending, investment, exports, and employment have many optimistic, the economic outlook is tempered by global geopolitical risks including on-going wars in Europe and the Middle East. Although the U.S. economic outlook remains positive, signs of a softening consumer are mounting within lower-to-middle-income households. While re...
The Americas and Asia Pacific Show Growth in Hotel Pipeline Activity
CoStar Group | July 19, 2024
WASHINGTON – 19 July 2024 – Two of the world regions, the Americas and Asia Pacific, showed a year-over-year increase in hotel pipeline activity at the end of the second quarter, according to June 2024 data from CoStar. CoStar is a leading provider of online real estate marketplaces, information, and analytics in the property markets. June 2024 (% change in comparison with June 2023): Europe In construction: 165,858 rooms (-2.4%) Final Planning: 93,241 rooms (-20.9%) Planning: 160,651 rooms (+8.0%) Total Under Contract: 419,750 rooms (-3.8%) Among countries in the region, Germany (27,302) led in construction act...
Travel and Tourism Sector Deal Activity Down by 12.6% YoY in H1 2024, Finds GlobalData
GlobalData | July 19, 2024
A total of 347 deals (comprising mergers and acquisitions (M&A), private equity, and venture financing deals) were announced in the global travel and tourism sector during the first half (H1) of 2024, which was a year-on-year (YoY) decline of 12.6% compared to the 397 deals announced during the same period in the previous year, according to GlobalData, a leading data and analytics company. Aurojyoti Bose, Lead Analyst at GlobalData, comments: “Even though there was a decline globally due to a dent in deal-making sentiments, the trend was a mixed bag across different markets and regions, with some countries contributing to the decl...
Braemar Hotels & Resorts Closes Sale of Hilton La Jolla Torrey Pines for $165M
Braemar Hotels & Resorts | July 18, 2024
DALLAS, July 18, 2024 -- Braemar Hotels & Resorts Inc. (NYSE: BHR) ("Braemar" or the "Company") today announced that it has closed on the previously announced sale of the Hilton La Jolla Torrey Pines for $165 million ($419,000 per key). Including anticipated capital expenditures of $40 million, the sale price represents a 7.2% capitalization rate on net operating income for the trailing twelve months ended March 31, 2024. The Company continues to evaluate the sale of two more hotels, subject to market conditions, to be completed in 2024 and 2025, respectively. "We are pleased to announce the closing of the sale of the Hilton...
Paramount Lodging Advisors (PLA) Arranges the Sale of the Doubletree Jersey City
Paramount Lodging Advisors | July 17, 2024
Paramount Lodging Advisors (PLA) is pleased to announce the sale of the Doubletree Jersey City. PLA transacted the 198-room asset through a receiver sale. The buyer purchased the property with an assumption of the existing CMBS debt. Sales efforts were led by PLA Principals Bennett Webster and Brent Clemens, and PLA director Sean Banilivy. “Our team remains bullish on the market and we look forward to continued strong positive RevPAR trajectory for New York City and surrounding areas. We were pleased to be able to trade with the debt assumption amidst continued uncertainty in capital markets,” noted Webster. PLA is now also...
2024 Wellness Real Estate Report by RLA Global in Collaboration With HotStats
| June 17, 2024
Wellness Hotels Surge in Global Market, Upper Upscale Properties Lead Hotels with wellness amenities experienced notable revenue growth in 2023, with upper-upscale properties emerging as top performers, according to the latest Wellness Real Estate Report by RLA Global, published in collaboration with P & L benchmarking firm HotStats. Among the key findings were: Revenue Performance: Luxury hotels with comprehensive wellness offerings reported the highest Total Revenue Per Available Room (TRevPAR), achieving three times the TRevPAR of upper upscale hotels in 2023. However, upper upscale properties led in terms of both Average D...
New York Market Leads U.S. With Number of Hotels Under Construction in Q1 2024
Lodging Econometrics (LE) | May 29, 2024
May 29, 2024 – PORTSMOUTH, NH – Lodging Econometrics (LE) releases the latest on hotel development for the New York, NY market, prior to the NYU International Hospitality Industry Investment Conference (NYU Conference). In the Q1 2024 LE Market Trend Report for the New York market, analysts report the market has a total of 78 projects/13,549 rooms in the hotel construction pipeline, the tenth largest pipeline by projects of any market in the U.S. Of the top 50 markets in the U.S., the New York market leads with the greatest number of hotels presently under construction standing at 47 projects/7,655 rooms. Projects scheduled to start...
Hospitality Financial Leadership: Putting a Dollar Value on a Hotel
DAVID LUND | May 20, 2024
By David Lund Determining the current selling or asking price for a hotel is a bit tricky. Compared to estimating the present value of a house it’s more like a detailed math exercise rather than a google search on Redfin. That’s what this piece is all about, how you can estimate the value, AKA sales price. Commercial real estate firms specializing in hotel valuations are what your bank is going to require that you use if you’re asking them for financing to buy a hotel. That makes sense because the bank will want to protect their interest. If you own a hotel and want to sell it you can go that route as well but it’s not like two ...
CBRE Expects RevPAR Growth to Improve in H2 2024, Driven by Holiday and International Travel
CBRE Group, Inc. | May 16, 2024
Dallas – May 16, 2024 – CBRE expects revenue per available room (RevPAR) growth to improve in the second half of 2024, following a weaker-than-expected first quarter. CBRE’s latest forecast projects a 2.0% increase in RevPAR growth for 2024, down from the 3.0% estimated in February 2024. RevPAR is now expected to grow by 3% for the remainder of the year, driven by international tourists, holiday travel and limited supply growth. CBRE forecasts GDP growth of 2.3% and average inflation of 3.2% in 2024. The performance of the lodging industry is closely tied to the strength of the economy, as there is typically a strong correlation be...
Travel and Tourism Sector Deal Activity Down by 13.5% YoY in January-April 2024, Finds GlobalData
GlobalData | May 15, 2024
Travel and tourism sector witnessed the announcement of 217 deals (mergers and acquisitions (M&A), private equity and venture financing deals) during January-April 2024 compared to the announcement of 251 deals during the same period in previous year. This represents a year-on-year (YoY) decline of 13.5% in deals volume during January-April 2024, according to GlobalData, a leading data and analytics company. Aurojyoti Bose, Lead Analyst at GlobalData, comments: “Deal activity in travel and tourism sector remained subdued amid the uncertain market conditions and ongoing geopolitical tensions. Several leading economies including the ...
Understanding the Current State of the Hotel Transaction Market
Eric Guerrero | May 15, 2024
By Eric Guerrero, Josh Williams The hotel transaction market continues to face significant headwinds. Investors are still concerned about the prohibitive cost of debt, and with the chances of a summer rate cut from the Fed becoming slimmer, expensive debt may remain for the foreseeable future. Additional challenges to getting deals done are the bid-ask spread, rising operational costs, and extensive change-of-ownership property improvement plans (PIPs). As ownership groups consider placing their hotel assets on the market, they should consider how these headwinds are affecting buyer underwriting so that they have realistic pricing expectat...
PODCAST: Why Global Investors Are Returning to Luxury Hotels
JLL | May 10, 2024
The pandemic was difficult for hotels, with lockdowns and health concerns keeping people from traveling too far from home. When and whether they’d recover was questionable. But the turnaround for the luxury end of the sector has been noteworthy. Zach Demuth, JLL’s Global Head of Hotel Research, says that the global hotel liquidity finished at $51 billion last year, noting that more than 20% of the single-asset liquidity was derived from luxury assets. It was one of the highest ever recorded in the hotel sector, according to JLL data. Now, he says, “Global investors are setting their s...
Meet the Money Unveils “The LIIC Top 10” for 2024
Jim Butler | May 10, 2024
By Jim Butler Today at JMBM’s Meet the Money® national hotel finance conference, The Lodging Industry Investment Council (“LIIC”) released its much-anticipated LIIC Top Ten – the 2024 update of its an annual survey of investment sentiment survey. LIIC — The lodging industry think tank The members of LIIC represent the acquisition and disposition control of more than $60 billion in lodging real estate. LIIC members comprise some of the hospitality industry`s most influential investors, lenders, corporate real estate executives, REITs, public hotel companies, brokers, and advisors. For almost 20 years, LIIC has prepar...
Q1 2024 Major U.S. Hotel Sales Survey
Daniel Lesser | May 2, 2024
By Daniel H. Lesser While the U.S. economy continues to expand and is currently a major driver of global growth, inflation has recently ticked up after falling considerably from a peak of 9.1% nearly two years ago. Many now perceive that in the near term, the U.S. Federal Reserve will not reduce borrowing costs, and some anticipate a resumption of raising rates by early 2025. Unless a severe economic downturn occurs, interest rates are likely to remain relatively elevated for an extended period. A tight labor market and strong household net worth have led to remarkable resilience in U.S. consumer spending as Americans continue to enjoy...
Avison Young – Ten Years of Performance
Avison Young | April 25, 2024
ATLANTA – April 25, 2024 – Avison Young Hospitality Group releases today its Ten Years of Performance presentation. Last 10 Years Sales Performance...
Sonnenblick-Eichner Company Arranges Strategic Joint Venture Equity Investment for Pacific City Lodging Portfolio, Pacific City, Oregon
Sonnenblick-Eichner Company | April 22, 2024
Los Angeles, CA – April 22, 2024 – Sonnenblick-Eichner Company has arranged a strategic joint venture equity investment into the ownership entity of the Pacific City Lodging Portfolio, located in Pacific City, Oregon. The Pacific City Lodging Portfolio is an irreplaceable collection of iconic oceanfront resort properties comprised of the Headlands Coastal Lodge & Spa, the Inn at Cape Kiwanda, Hart’s Camp, and the Cape Kiwanda RV Park. Noble House Hotels & Resorts of Kirkland, Washington provided the investment into the partnership. This investment from Noble House allowed the existing ownership an opportunity to realize equit...
European Hotel Values See Modest Rise in 2023 but Fail to Reach Pre-Pandemic Levels, Reveals Latest HVS Valuation Index
HVS | March 11, 2024
11 March 2024, London: Hotel values across Europe remained steady in 2023 buoyed by the consolidation of the post-pandemic recovery and a steady desire to travel keeping average room rates strong, according to the annual European Hotel Valuation Index (HVI) published this week by global hotel consultancy HVS. These influences combined to offset the impact of a number of geopolitical challenges including the war in Ukraine, the war between Israel and Hamas and the shaky Chinese economy as well as increasing operating costs and high interest rates. The result was a modest uplift in hotel values of around 1% across Europe keeping them...
Avison Young Closed 12 Hotel Transactions Over Last 90 Days
Avison Young | March 11, 2024
ATLANTA – March 11, 2024 – Avison Young announces today that the firm has closed 12 hotel transactions over the last 90 days. Four of the sales were Hilton-branded hotels, two were Marriott-branded hotels, and an IHG and other brands made up the balance. Geographically the hotels were located in the following states – IN, KY, PA, CO, VA, AR, MA, GA, and TN. Of special note, Thierry Roch and Rick George closed a sale on a boutique hotel in the Cape Cod area for close to 1m per room and Chris Kilcullen closed the sale for the upscale Ascent on Main in Parker, CO. Chris Stark, Brad Sinclair, Mike George, Thierry Roch and Rick George were t...
Post-Pandemic Momentum in Manhattan
Roland de Milleret | February 22, 2024
By Roland deMilleret, Patricia Shih The Manhattan market, which demonstrated resilience during the decade ending 2019, was severely affected by the COVID-19 pandemic. The city reopened in June 2021 when restrictions on gatherings were lifted, and tourist attractions reopened; Broadway theaters reopened in September 2021. Despite a minor setback in late 2021 due to the COVID-19 variants, the market has been experiencing a continued recovery since, primarily driven by strong gains in average rate over the last three years. In 2023, the average daily rate (ADR) peaked, surpassing the 2019 level by over 20%. Conversely, occupancy continued to ...
Ashford Hospitality Trust Agrees to Sell 144-Room Residence Inn Salt Lake City for $19.2 Million
Ashford Hospitality Trust | February 16, 2024
DALLAS, Feb. 16, 2024 -- Ashford Hospitality Trust, Inc. (NYSE: AHT) ("Ashford Trust" or the "Company") today announced that it has signed a definitive agreement to sell the 144-room Residence Inn located in Salt Lake City, Utah (the "Hotel") for $19.2 million. The sale is expected to be completed in early March and is subject to normal closing conditions. The Company provides no assurances that the sale will be completed on these terms or at all. When adjusted for the Company's anticipated capital expenditures, the sale price represents a 4.6% capitalization rate on 2023 net operating income, or 18.2x 2023 Hotel EBITDA. Excluding the an...
Q4 2023 Major U.S. Hotel Sales Survey
Daniel Lesser | February 7, 2024
At the dawn of 2024, a U.S. presidential election looms amidst numerous geopolitical challenges including two major ongoing wars in Europe and the Middle East which threaten global economic growth. The good news is, thus far it appears the U.S. economy has avoided recession with many now perceiving continued growth, albeit subdued. Inflation has cooled, the economy continues to add jobs, interest rates appear to have peaked and are anticipated to gradually decline for the next two years. Furthermore, a roaring stock market continues to fuel American consumer expenditures resulting in strong demand for travel including lodging. Despite a re...
Boston/Cambridge Lodging Market – Outlook Is for Positive Growth for 2024
Rachel J. Roginsky | November 15, 2023
By Rachel Roginsky After spending the last 32 years tracking and analyzing the Boston/Cambridge (“the City”) lodging market, Pinnacle Advisory Group (“Pinnacle”) is quite comfortable forecasting top line (occupancy and ADR) revenue for the City. But projecting the future with precision can be complicated. Here’s our perspective on the City’s lodging market for 2024: • Convention and Group Demand – This segment of demand comprises approximately 23% of total demand in the City. According to Signature Boston, the Boston Convention and Exhibition Center will generate approximately 500,000 room nights in 2024, which will be a...
Record-High Counts in China’s Hotel Construction Pipeline; Upscale and Upper Midscale Chain Scales Also Reach Peak Totals in Q3
Lodging Econometrics (LE) | November 14, 2023
November 14, 2023 – PORTSMOUTH, NH – In the Q3 2023 China Construction Pipeline Trend Report by Lodging Econometrics (LE), at the end of the quarter, China’s total construction pipeline reached a record high of 3,720 projects with 686,017 rooms, up 3% by projects and unchanged by rooms year-over-year (YOY). The record-high projects in the total pipeline can be attributed to the number of upscale and upper midscale chain scale projects, which both hit project and room count peaks this quarter. The upscale chain scale ended Q3 with a total of 850 projects/198,277 rooms, and the upper midscale chain scale has 1,222 projects/194,515 rooms....
Travel and Tourism Sector Deal Activity Down by 31.8% YoY During January-October 2023, Finds GlobalData
GlobalData | November 10, 2023
A total of 621 deals* were announced in the travel and tourism sector globally during January-October 2023, which was a decline of 31.8% compared to the announcement of 911 deals during the same period in the previous year, finds GlobalData, a leading data and analytics company. An analysis of GlobalData’s Financial Deals Database also revealed that all the deal types under coverage witnessed a decline in volume during January-October 2023 compared to January-October 2022. For instance, the volume of mergers and acquisitions (M&A) deals declined by 34.2% during January-October 2023 compared to January-October 2022. Meanwhile,...