Search
 

First-Half 2006 Hotel Sales Soar to $22B

CHICAGO-By mid-year, US hotel sales reached $21.8 billion, versus $21 billion for all of 2005.

By Marita Thomas | Updated on September 14, 2006

CHICAGO-US hotel buyers outnumber sellers by five to two, according to the latest Hotel Investor Sentiment Survey by locally based Jones Lang LaSalle Hotels. Calling this “a remarkable time” for the industry, Kristina Paider, JLL Hotel’s SVP of marketing and research, tells GlobeSt.com, this is the third consecutive year of increased US hotel sales volume.

By mid-year, US hotel transaction volume reached “an unprecedented” $21.8 billion, exceeding $21 billion for all of 2005. Compared to the first six months of previous years, this year’s volume represents a 160% increase over the same period in 2005 and a 200% hike over the first six months of 2004. Full-year 2006 volume is expected to exceed $30 billion.

“Pre-emptive bids, hard money offers, first-time investors, and yield-probing equity” are the drivers of this surge, according to Paider. The JLL hotel unit tracks transactions of $10 million and above. Within that arena, 135 transactions closed in this year’s first six months, and the average price per key was $154,125. According to Michael Corbett, president of locally based GVA Worldwide, his company’s hospitality team has closed hotel sales and financings valued at nearly $243 million since the beginning of this year.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2024 ALM Global, LLC. All Rights Reserved.