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ACQUISITIONS HEAT UP IN PRIMARY MARKETS
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Expect to see a wave of hotels trade hands in the third and fourth quarters, as transactions are anticipated to pick up as much as 50% this year compared to 2009. Company Removed, Company Removed and Company Removed each pick up a high-profile property or two. Company Removed acquires Le Méridien Dallas North in Texas for around $17M and enters a JV with Company Removed to purchase The Hotel Minneapolis. Company Removed inks an agreement to pick up the 821-room Hilton Minneapolis for around $155M. A group of lenders, led by Company Removed, submitted the highest bid to acquire the Makena Beach and Golf Resort for $55M.
The bid/ask gap sees significant narrowing since the start of the year. As predicted, acquisitions of full-service assets in primary markets saw a spike in Q2, which will likely increase further in the second half of the year. The herd of opportunistic buyers that are coming off the sidelines increases and results in a flight to quality assets, where some buyers might be overpaying based on today’s numbers, but they are willing to take the chance on long-term plays. Up until the last three or four months, most of the assets sold were in secondary markets and under $15M. The first spark of full-service deals hit in April and May when more than six full-service properties changed hands, including the Los Angeles Marriott Downtown, Renaissance Orlando Airport Hotel, Embassy Suites in Tampa, Hyatt Regency Boston and Hilton Checkers Los Angeles. Expect this trend to continue for the next six months, as the big players start to get active and spend their funds.
Access to this newsletter is not available online and restricted to our subscribers.
acquisitions of full-service hotels, bid/ask gap, Embassy Suites in Tampa, Hilton Checkers, Hilton Minneapolis, Hotel Minneapolis, Hyatt Regency Boston, Le Méridien Dallas North, Los Angeles Marriott Downtown, Makena Beach and Golf Resort, Renaissance Orlando Airport Hotel |
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 Call 1-800-421-3483 |
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Hotel Lodging News
gives you the inside information on what buyers will pay for properties as well as cap rates, where they look for transactions, what type of hotels spark their interest and why.
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