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
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,...
When the Pendulum Stops Swinging
H. Keith Thompson | November 10, 2023
By H. Keith Thompson I have been a hotel broker for 33 years and during all past cycles, the markets would simply swing from being either a seller’s market or a buyer’s market and then after a correction, swings back again. Using a swinging pendulum as a metaphor for the hotel real estate market today, the pendulum has almost stopped swinging. In my history as a hotel broker, the only time the pendulum almost stopped swinging was just after 911 and this new interest rate cycle we all find ourselves in today. In 2023, new transactions in the hotel space are down 50-70 percent depending on the brand and the market. Today it is neither...
Atlanta CBD Hotel Submarket Continuing to Push Forward
Anne Gompel, Adam Zarczynski | November 9, 2023
By Anne Gompel, MAI, CHIA and Adam Zarczynski, CHIA With the busiest airport in the world and a lower cost of doing business than peer regions, Metro Atlanta is the key inland distribution hub of the Southeast. Metro Atlanta is home to 17 Fortune 500 corporations like The Home Depot, Coca-Cola, Delta Air Lines, and UPS. It also sustains a diverse economy centered around technology, healthcare and health tech, logistics, advanced manufacturing, and now electric vehicles and clean tech. For the 10th consecutive year Area Development Magazine has ranked Georgia the number one state for business. Atlanta's strong economy has been spurred by...
Paramount Lodging Advisors Successfully Transacts Chicago Renaissance OHare Hotel
Paramount Lodging Advisors | November 7, 2023
CHICAGO, IL - Paramount Lodging Advisors (PLA) has successfully executed the sale of a Marriott-branded Renaissance Hotel situated minutes from Chicago O’Hare International Airport. Managing Director Mike Schlictman and Director Andrew Makhlouf, along with Partners Bennett Webster and Brent Clemens represented the seller in the transaction. The full-service 362-key Renaissance Hotel opened in 2005 and features over 9,000 SF of meeting space and the Asado Urban Grill restaurant. The upscale property is ideally located in the top 3 MSA market of Chicago....
Canada’s Pipeline Remains Robust – Early Planning Stage Shows Significant Increase
Lodging Econometrics (LE) | October 31, 2023
October 31, 2023 – PORTSMOUTH, NH – In the Q3 2023 Hotel Construction Pipeline Trend Report for Canada by Lodging Econometrics (LE), analysts report that the total construction pipeline in Canada stands at 275 projects/37,780 rooms, up 5% by projects and 8% by rooms year-over-year (YOY). In the third quarter, Canada had 22 new project announcements with 2,816 rooms. Hotel projects presently under construction in Canada at Q3 stand at 56 projects/8,228 rooms, up 4% and 18% YOY, respectively. Projects scheduled to start construction in the next 12 months stand at 101 projects/11,548 rooms at Q3, while projects in the early planning stag...
Q3 2023 Major U.S. Hotel Sales Survey
Daniel Lesser | October 26, 2023
By Daniel Lesser Notwithstanding a persistent jittery economic environment and rising global geopolitical concerns, market conditions in the U.S. appear simultaneously shaky and resilient. National lodging sector metrics, particularly average room rates and RevPAR, continue to achieve exceptional results as demand for travel and lodging remains robust. Although overall leisure patronage is trailing off from pandemic highs, due in part to Americans opting for international travel, domestic corporate individual and group meeting business continues to rebound to pre Covid-19 levels. Additionally, inbound international travel to the U.S. conti...
Travel and Tourism Sector Deal Activity Down by 33% YoY in Q1-Q3 2023, Finds GlobalData
GlobalData | October 16, 2023
A total of 558 deals* were announced in the travel and tourism sector globally during the first three quarters of 2023, which was a decline of 33% compared to the announcement of 833 deals during the same period in 2022, according to GlobalData, a leading data and analytics company. An analysis of GlobalData’s Financial Deals Database also revealed all the deal types under coverage, and most of the key markets recorded a considerable year-on-year decline in the announcement of deals during Q1-Q3 2023 compared to Q1-Q3 2022. For instance, mergers and acquisitions (M&A) deals volume for the travel and tourism sector declined by...
Pebblebrook Hotel Trust Executes Contract to Sell 221-Room Hotel Zoe Fisherman’s Wharf for $68.5M
Pebblebrook Hotel Trust | October 16, 2023
BETHESDA, Md. -- Pebblebrook Hotel Trust (NYSE: PEB) (the “Company”) announced today that it executed a contract to sell the 221-room Hotel Zoe Fisherman’s Wharf in San Francisco, California for $68.5 million to a third party. The property sale is subject to normal closing conditions. The Company offers no assurances that the sale will be completed on these terms or at all. The sale is targeted to be completed later in the fourth quarter of 2023. For the trailing twelve months ended September 30, 2023, the hotel’s net loss is estimated at ($1.2) million, its net operating income is estimated at $2.2 million, and its earnings before...
Hotel Property Tax Relief Varies by Geography
CBRE Hotels | October 2, 2023
By Robert Mandelbaum and David P. Fuller MAI Based on a sample of more than 3,000 hotels from CBRE’s Trends® in the Hotel Industry database, U.S. hotel property tax expenditures averaged $2,626 per available room (PAR) in 2022. This is 10.8% less than the $2,943 PAR recorded in 2019, before the COVID-19 pandemic. Concurrently, the earnings before interest, taxes, depreciation, and amortization (EBITDA) for these same properties fell by 1.7%. From 2019 to 2022, the combination of EBITDA decreases, and cap rate increases put downward pressure on values. A 100 bp increase in cap rates, coupled with the 1.7% decrease in EBITDA correlate...
The Mogharebi Group Advises Sunstone Development on Acquisition of Budget Inn Near Disneyland Park in Anaheim
The Mogharebi Group | August 3, 2023
Anaheim, CA (August 3, 2023) – The Mogharebi Group has arranged the sale of the 60-year-old Budget Inn, a 24-key limited-service hotel located at 1042 Ball Road in Anaheim, announced Mogharebi’s Executive Vice President Otto Ozen. The buyer was local private investor Sunstone Development which intends to explore long-term alternative strategies for the site including full-service hotel uses. The off-market transaction completes Sunstone’s 1.1-acre land assemblage at the gateway to Disneyland Park that included the purchase of the adjacent 44-key Days Inn by Wyndham last year. Sunstone recognized that together, these properties comb...
What’s Whetting Investors’ Appetite for Hotels?
JLL | July 31, 2023
Recent hotel deals in Asia Pacific reflect uptick in travel and macro-economic confidence A string of marquee hotel sales across Asia Pacific are raising hopes of a rebound in investor appetite. After macroeconomic challenges and rising debt costs battered deal activity in the first half of 2023, July saw a series of major deals, including Singapore’s largest-ever single-asset hotel sale. Singapore property developer UOL Group sold the 542-room PARKROYAL Kitchener Road hotel to Midtown Properties, a unit of Worldwide Hotels Group, in a deal worth S$525 million ($388 million). This was quickly followed a week later by the first h...
Sonnenblick-Eichner Company Arranges $100 Million Sale of The Inn at Rancho Santa Fe, Rancho Santa Fe, California
Sonnenblick-Eichner Company | July 25, 2023
Beverly Hills, CA (July 25, 2023) -- Sonnenblick-Eichner Company, on behalf of Steve Hermann Hotels, has arranged a $100 million sale of The Inn at Rancho Santa Fe, an 85-room, full-service, luxury boutique resort located in north San Diego County’s exclusive enclave of Rancho Santa Fe, CA. The resort is undergoing an extensive “top-to-bottom” renovation. When fully operational in the fourth quarter of this year, it will be positioned as one of the most preeminent and exclusive destinations in California. The resort was purchased by an institutional investment fund. “We were able to generate interest in the acquisition given...
JLL’s Global Real Estate Perspective May 2023
JLL | July 24, 2023
Subdued activity as uncertainty delays decision-making Economic conditions remain challenging in many countries with inflation still stubbornly high, interest rates continuing to climb and softening labor markets, while distress in the banking sector has added to volatility. This is leading to more defensive strategies from occupiers as they delay requirements. Continued uncertainty and elevated borrowing costs are also impacting investor sentiment and inhibiting transaction markets. The effects of economic headwinds on the office sector increased during the first quarter, with global leasing volumes 18% below Q1 2022 and declining across...
5 Ways AI Is Creating New Demand in Commercial Real Estate
JLL | July 21, 2023
Much of the attention around generative artificial intelligence (AI) has focused on its transformative potential. For the real estate sector, however, the analytical prowess of AI and its ability to unearth new avenues of demand for space are what’s sparking interest. “AI has enormous potential to reshape real estate, with near- and long-term impacts ranging from the emergence of new markets and asset types to innovations in investment and revenue models,” says Yuehan Wang, Global Research Associate, Real Estate Technology, JLL. “A rapidly expanding AI ecosystem and its supporting infrastructure will...
Q2 2023 Major U.S. Hotel Sales Survey
Daniel Lesser | July 20, 2023
By Daniel Lesser Defying the expectations of many, the U.S. economy has demonstrated resilience driven in part by a solid employment report with stronger-than-expected wage growth during June, along with continued healthy levels of consumer spending. With this said, the U.S. economy has been slowed by the Federal Reserve’s aggressive drive to tame inflation through a series of interest rate hikes that began early last year. Although trending downward, with inflation remaining above its two percent target, the Federal Reserve is on track to raise interest rates again this month and mull another hike as soon as September. Despite elevate...
Avison Young Closes Last Hilton Hotel in Portfolio Sale
Avison Young | July 19, 2023
ATLANTA – July 19, 2023 – Avison Young announces today that the firm has closed the transaction on the last Hilton hotel in a 10-property portfolio sale. The portfolio were all Hilton and Marriott assets located in Maryland and Pennsylvania and consisted of four Home 2 Suites, two Homewood suites, two Hampton Inns & Suites, one Fairfield Inn and one Tru by Hilton. Brad Sinclair said, “This portfolio sale represents once again, the strength of the Hilton and Marriott brands and consistent yield for investors. Financing today is very challenging, but with the right property type and actual performance, debt is still available.”...
Mobius Vendor Partners President Bob Kobek Reacts to BBB Report on Timeshare and Vacation Club Sales
Mobius Vendor Partners | July 10, 2023
Indianapolis, IN (July 10, 2023) – Bob Kobek, President of Indianapolis-based Mobius Vendor Partners, who also serves on the Board of Directors of the Better Business Bureau (BBB)® Serving Central Indiana, has shared his reactions to a recent study from the Better Business Bureau entitled Unpacking timeshare and vacation club sales, by Brian Edwards, BBB International Investigations Specialist. “The BBB mission is to promote trust and business integrity. While its latest study does give a thorough overview of timeshares, the various timeshare structures, and the pros and cons of ownership, its perspective doesn’t consider that times...
How Real Estate Is Raising Its Data Game
JLL | May 31, 2023
CRE professionals are facing a data deluge that requires robust tech strategies Corporate real estate professionals grappling with a raft of complex challenges are increasingly turning to technology for solutions. But it’s new ground for many of them, who are having to quickly get to grips with proptech solutions that can help manage buildings, drive sustainability and improve workplace experiences. One particular area of focus has become the dreaded “d” word: data. On the one hand, real estate professionals are drowning in a sea of data sourced from operational, financial and supplier systems, building sensors, workplace apps...
Growth in Worldwide Wealth Vaults Global Luxury Travel to New Heights Creating Increased Investor Interest
JLL | May 17, 2023
JLL Hotels & Hospitality Group releases The Evolution of Global Luxury Hospitality report CHICAGO, May 17, 2023 – The global luxury hospitality industry is undergoing a transformation as luxury hotels have risen in popularity in tandem with rising global wealth and consumers’ increased prioritization on immersive experiences. The number of luxury hotel brands and supply have increased by more than one million rooms over the past 40 years. Investors have taken notice as luxury hotels have become an increasingly institutional investment and changing consumer preferences give rise to new investment opportunities. As the world becomes i...
