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
Kansas City’s Flourishing Demand Generators Bolster Hotel Interest
Benjamin Giebler | May 9, 2023
By Benjamin Giebler, Daniel P. McCoy The Kansas City hotel market has rebounded following the impacts of the COVID-19 pandemic, and high levels of leisure demand and the return of convention activity have driven the recovery. Despite rising construction costs, a number of hotel developments are proposed in Kansas City, signaling an optimistic outlook for the market. Events and Developments in Kansas City A number of major events and development projects across Kansas City should boost hotel demand and bolster pricing power in the coming years, as outlined below. In March 2019, construction began on a $1.5-billion project to convert ...
Impact of Recent Interest Rate Increases on Commercial Real Estate Transactions and Pricing
Luigi Major | May 8, 2023
By Luigi Major The COVID-19 pandemic has had a profound effect on the global economy, leading to widespread inflationary pressures. Governments around the world responded with unprecedented levels of fiscal and monetary support to stimulate their economies, the impact of which was felt months later as economies reopened and consumers once again began spending. This trend, along with supply chain issues, led to a noticeable increase in the cost of goods and services. In response to the inflationary pressures resulting from these factors, the United States Federal Reserve System (known as the Fed) has embarked on an interest rate-hike c...
Paramount Lodging Advisors Successfully Transacts in Angleton TX With the Sale of the La Quinta Inn & Suites by Wyndham
Paramount Lodging Advisors | May 2, 2023
Angleton, TX - Paramount Lodging Advisors is pleased to announce the successful sale of the La Quinta Inn & Suites Angleton, TX. The property was sold by the firm's Texas-based Senior Managing Director Kami Burnette and Senior Associate Mason McDavid, along with Senior Managing Directors Bennett Webster and Brent Clemens, who represented the seller in the transaction. The Subject Hotel is a 57-room limited-service hotel located approximately 40 miles southwest of Houston. The property was sold to regional owners who are excited to take on the Wyndham property improvement plan and compete in the local market with an updated hotel. "W...
Hotel Transactions See 18% Decline in 2022 as Interest Rates Surge
HVS | May 1, 2023
1 May 2023, London: Hotel transactions across Europe failed to show the recovery expected during 2022 as confidence was hit by the Russian invasion of Ukraine which fuelled huge increases in energy and food costs, a rise in overall inflation and higher interest rates. According to the annual HVS European Hotel Transaction Report transactions for the year totalled €13.3bn, an 18% fall on the previous year, although the average achieved price per room rose 13% to €235,000 on the back of price rises in portfolio transactions. “The year started strongly with initial activity outpacing Q1 2021, but the economic implications of Russia...
Paramount Lodging Advisors Successfully Transacts in College Station With the Sale of the TownePlace Suites by Marriott
Paramount Lodging Advisors | April 25, 2023
College Station, TX - Paramount Lodging Advisors (PLA) has successfully executed the sale of a Marriott-branded hotel located in College Station near Texas A&M University. Texas-based Sr. Managing Director Kami Burnette and Sr. Associate Mason McDavid, as well as Sr. Managing Directors Bennet Webster and Brent Clemens represented the seller in the transaction. The 94-key, extended-stay hotel was built in 1999 and is located only a mile and a half from Texas’ largest public university. The new owners are excited to begin work on the Marriott property improvement plan where they hope to benefit from refreshed room product in a contin...
Q1 2023 Major U.S. Hotel Sales Survey
Daniel Lesser | April 21, 2023
By Daniel Lesser With continued elevated levels of inflation and interest rates, and fears of an impending economic recession, the U.S. commercial real estate industry continues to find itself in choppy waters. The recent stunning and swift collapse of Silicon Valley Bank (SVB), and subsequent failures of Signature Bank (SB), and Credit Suisse Group AG (CS) has created a perceived credit crunch now rippling across the global financial system. The SVB implosion was caused by a three-year monetary policy that began during the COVID pandemic and included enormous sums of government stimulus and near-zero interest rates resulting in a bloat...
Hotel Conversions to Residential Use Heat Up
Rod Clough | April 12, 2023
By Rod Clough, Koby Kearney As economy and budget hotels are nearing the end of their economic life, some properties are finding new capital for renovations from buyers seeking to convert properties to residential use. We have compiled a sample list of hotels that have gone through this metamorphosis, illustrated at the bottom of this article. These transactions reflect the following range of prices per room. Price Per Key for Hotel to Residential Conversions Source: HVS We want to caution buyers, particularly municipalities that may not be savvy hotel buyers, not to overpay for these assets, as these dated hotels should be avai...
What Opportunities Will You Find at Meet the Money?
Jim Butler | April 6, 2023
By Jim Butler and the Global Hospitality Group The energy is building as we prepare for Meet the Money’s return in May! Our registrants can look forward to an exciting conference structured around networking, dealmaking, and gathering insight from the industry’s best minds. There are plenty of opportunities in today’s hospitality industry for those seeking them, and Meet the Money is an ideal place to start looking. Who will you meet, and what possibilities will you find? Hotel owners, operators, developers, lenders and investors will come together at this year’s conference to build networks, resolve challenges, find financin...
Hotel “Broker” vs. Trusted Advisor
Robert J. Webster | April 4, 2023
By Robert J. Webster When I first started out in hotel brokerage back in the late 1980s, the market was unsophisticated and had not adopted the fiduciary focus that was required to establish trust. Consequently, the term hotel “broker” had mostly a negative perception. Over the course of the past 35 years, for many professionals, “broker” has moved to a role as a trusted advisor for those who passionately make paramount their fiduciary responsibilities. In this article, I would like to distinguish the difference between the negative connotation of “broker” from the role of a trusted advisor. First and foremost, trusted a...
Banyan Investment Group Rebrands as Satori Collective
Satori Collective | March 27, 2023
ATLANTA--Officials of the former Banyan Investment Group today announced that the firm is rebranding as Satori Collective, an investment management firm focusing primarily on hotel property investment. Additionally, the company has spun off its property management platform to become Aperture Hotels, an independent, third-party hotel management company. Moving forward, Satori and Aperture will work independently of one another. “Satori is a Buddhist term meaning ‘awakening and deep understanding,’ which is how our team approaches commercial real estate investment,” said Andy Chopra, co-founder and managing partner, Satori. “With m...
Ray Regan Joins Paramount Lodging Advisors Team
Paramount Lodging Advisors | March 23, 2023
ALBUQUERQUE, NM – The Paramount Lodging Advisors (PLA) team is pleased to announce Ray Regan as their newest Associate. Ray is joining fellow PLA team member, Michael Sheppard in the New Mexico office and will be focusing on the southwestern region of the United States. Ray has a successful background in both individual and portfolio hospitality and commercial transactions in the southwestern market. “I am thrilled to extend the invaluable experience and resources of the Paramount Lodging Advisors platform to the benefit of existing and prospective clients across New Mexico and the broader SW region,” stated Regan. Ray can be c...
European Hotel Values Rise 3% in 2022 in What Proved a Mixed Year for the Sector
March 23, 2023
Hotel values across Europe rose around 3% in 2022 with Paris, London, Zürich, Amsterdam and Rome remaining those with the highest valued hotels, according to our annual European Hotel Valuation Index (HVI) published this week. During 2022, hotel values benefitted from a number of factors including strong improvement in RevPAR and the recovery of ancillary revenues. Despite this, high inflation, an increasing cost of debt and the looming threat of recession limited the recovery of values, leaving them below their 2019 peak. ‘The pandemic year of 2020 witnessed hotel values plummet by around 15%, although they rallied by around 5...
Paramount Lodging Advisors Successfully Transacts the Sale of Two Hotels in the Atlanta Market
Paramount Lodging Advisors | March 21, 2023
Carrollton, GA - Paramount Lodging Advisors (PLA) has successfully executed the sale of the Best Western and Hilton branded hotels in Carrollton, GA. Texas-based Senior Managing Director Kami Burnette and Director Omari Head lead the sale of the Best Western in a traditional marketing process. The Hampton Inn Carrollton sale was represented by Omari Head along with Principals Bennett Webster and Brent Clemens. Paramount represented the receiver of the 2003 build, 77 key hotel. “Both properties generated significant interest and positive results for our clients,” stated Omari Head. “This is the second closing in the Atlanta area ...
Aspen Hospitality Forms Strategic Joint Venture With Continuum Partners
Aspen Hospitality | February 23, 2023
DENVER and ASPEN, Colo., Feb. 23, 2023-- Continuum Partners LLC, a Denver-based real estate developer specializing in building urban, mixed-use projects, announced today that it has sold an interest in the Hotel Born to Aspen Hospitality, the hospitality division of Aspen Skiing Company. The newly formed joint venture marks the beginning of the hotel's future conversion to Limelight Denver under the operation of Aspen Hospitality in 2023. Rick Rush of CBRE represented Continuum in the deal. Hotel Born will continue to operate as usual until the conversion to Limelight occurs, with the partners ensuring a seamless transition f...
Pebblebrook Hotel Trust Completes Sale of The Heathman Hotel for $45M
Pebblebrook Hotel Trust | February 23, 2023
BETHESDA, M.D.-- Pebblebrook Hotel Trust (NYSE: PEB) (the “Company”) today announced that on February 22, 2023, it closed on the sale of the 151-room The Heathman Hotel in Portland, OR for $45.0 million to a third party. For the trailing twelve months ended December 31, 2022, the hotel’s net operating income was $1.0 million, and its Hotel EBITDA was $1.2 million. Based on the hotel’s operating performance for 2019, the $45.0 million sales price reflects a 10.7x EBITDA multiple and an 8.4% net operating income capitalization rate. The net operating income for both periods mentioned above is after an assumed annual capital reserve o...
U.S. Hotel Sales Kick-Off 2023 With Record-Breaking Pricing in Growing Markets
JLL | February 16, 2023
Investors believe long-term growth trends will outweigh near-term capital markets headwinds CHICAGO, Feb. 16, 2023 – Despite a slowdown in sales in the second half of 2022 due to dislocation in the debt markets, hotel investors have kicked off 2023 with record sales for quality assets in highly desirable and growing markets. A recent example of these transactions includes the sale of the Diplomat Beach Resort in Hollywood, Florida, which was the third-largest single-asset sale in U.S. history. In addition, the recent closing of the AC Hotel Phoenix Biltmore set a record price-per-key for upscale select-service assets in the Phoenix mark...
Avison Young Hospitality Group’s Sales for Last Ten Years
Avison Young | February 2, 2023
ATLANTA – February 2, 2023 – Avison Young Hospitality Group announced that with the closings this week, the hotel brokerage firm has closed 595 hotel transactions over the last ten years. The brand mix was 149 Marriott, 114 Hilton, 67 IHG and Hyatt, 102 Choice and Wyndham and 163 other brands, boutiques, and independents. Geographically, 64 of the closings were in the Northwest, 89 in the Northeast, 91 in the Northcentral, 66 in the Southcentral and 285 in the Southeast. Brad Sinclair said, “clearly with recent interest rate hikes, the last several months have tested the resolve of hotel owners, developers, lenders, investors, and br...
The Mogharebi Group Brokers $16.25 Million Sale of 32-Room Hotel on California’s Central Coast
The Mogharebi Group | January 25, 2023
Costa Mesa, CA (January 25, 2023) — The Mogharebi Group (TMG) has arranged the sale of the Inn at Avila, a 32-room beachfront hotel property in the Central Coast city of Avila Beach, CA, for $16.25 million. Ben Ketel, of TMG, represented the seller of the hospitality property that traded to a Los Angeles-based private investor. Built in 1965, the Inn at Avila Beach offers eight different suite types, ranging from modern spa rooms to the exclusive “owner’s suite.” The property includes a rooftop coffee house, grilling area, a business center and laundry services. “The Buyer was certainly attracted to the fact that the Inn at Av...
Paramount Lodging Advisors Successfully Transacts in Lubbock With the Sale of the Embassy Suites
Paramount Lodging Advisors | January 17, 2023
LUBBOCK, TX - Paramount Lodging Advisors (PLA) has successfully executed the sale of a Hilton-branded hotel located in SW Lubbock near South Plains Mall. Texas-based Senior Managing Director Kami Burnette and Senior Associate Mason McDavid, along with Principals Bennett Webster and Brent Clemens represented the seller in the transaction. The full-service 156-key Embassy Suites was built in 1982 and features multiple meeting rooms and a restaurant. The new owners are excited to repurpose the legacy hotel to an alternative use in a growing Texas market, home to one of the state’s largest universities. “The hotel was sold unencumbere...
HVS Monday Musings: Understanding Hospitality REIT
Anand Rai | January 16, 2023
By Anand Rai, Dipti Mohan The US government first established Real Estate Investment Trusts (REITs) in the 1960s, allowing retail investors access to the nation's vast portfolio of income-producing real estate assets. Since then, the REITs market has expanded significantly across many real estate asset classes, including hospitality. The first hospitality REIT (or lodging REIT) was introduced in the US in 1970, but this asset class didn't start to gain popularity until the mid-1990s when investors realized they could own and profit from lucrative hotel assets without having to spend a significant sum of money to acquire the asset. Today, a...
Q4 2022 Major U.S. Hotel Sales Survey
Daniel Lesser | January 16, 2023
By Daniel Lesser Heading into a new year, the U.S. commercial real estate industry finds itself in choppy waters amid fears of a recession, rising inflation, and interest rate hikes as market participants await a course correction. Challenges during 2022 including continued supply chain constraints, increasing labor costs and struggles in attracting talent are anticipated to endure through 2023. Combined with international and domestic geopolitical issues and market volatility, many believe during the near term, the U.S will experience a mild to moderate economic recession. Although inflation appears to have recently stabilized, it remains...
The Lost Hotels Of Midtown New York
Dexter Wood | January 12, 2023
By Dexter Wood Several legendary properties remain closed in Midtown New York, and most will never reopen. Luxury hotel demand staged a respectable resurgence last year as the dreadful impact of the pandemic continued to fade. Trailing twelve-month RevPAR for luxury hotels in NYC, as of November 2022, has already surpassed its pre-pandemic benchmark from December 2018. This was a welcome improvement for prominent Midtown hotels that had reopened after many months of closure, including the Mandarin Oriental, Ritz-Carlton, The Plaza, St. Regis, The Peninsula, and the Lotte New York Palace. However, some well-known properties that enjoy...
Paramount Lodging Advisors Welcomes Hunter Johnson to Team
Paramount Lodging Advisors | January 10, 2023
CHICAGO, IL – The Paramount Lodging Advisors (PLA) team is thrilled to welcome Hunter Johnson as Senior Associate. Hunter’s office will be based in Southwest Colorado with a focus on Colorado and Utah. Hunter has covered the industry with experience in hotel purchasing, financing, and brokerage. In the last 24 months, he has transacted over $87MM from small independent hotels to IHG and Hilton assets. “I am honored and grateful to be part of such an entrepreneurial, honorable, and hardworking team,” stated Johnson. If you would like to reach out to Hunter, he can be contacted at hunter@paramountlodging.com or 970.880.0621....
Hilco Real Estate Announces the Sale of the Tru By Hilton Bryan College Station in Texas for $9.9 Million
Hilco Real Estate | January 5, 2023
NORTHBROOK, ILL (January 2023) – Hilco Real Estate (HRE) completed a successful sale of the Tru by Hilton Bryan College Station hotel for a total closing price of $9,900,000. Keith Worsham, senior vice president and head of the national hotel team at HRE, brokered the sale of the property on behalf of the seller, Wealth Hospitality. “Our team is happy to have helped our seller with this transaction resulting in $101,020 per key; and, at the same time, we were able to provide the buyer a new opportunity with the Hilton brand,” stated Keith Worsham. Located in Bryan, Texas, the property is well-positioned around Texas’ five major ...
