Hotel Brokers Anticipate More Strong Sales in 2008

The hotel industry will be hard-pressed to top 2007 in terms of record per-room sale prices, which ran counter to the revenue those rooms generated. Yet experts believe hotel sales are likely to surge ahead through the remainder of 2008, even if the number of rooms sold doesn’t keep pace with last year.

“The volume in ’08 hasn’t been the same as in ’07,” says Daniel Lesser, senior managing director-industry leader, valuation and advisory services-hospitality and gaming group of CB Richard Ellis in New York City. He anticipates the number of transactions valued more than $10 million during the first quarter to be fewer than those for the same period last year, when he completes his upcoming quarterly report.

Lesser previously wrote in a research report for GlobeSt.com that nearly $60 billion in hotel sales occurred in 2007, breaking the record for a fourth consecutive year. While availability of capital is tighter this year, he notes that foreign investment in US hotels is increasing and is still considered safe.