ORLANDO—Forty-two hotels changed hands in Orlando in 2012. That's up from 38 in 2011. So says a new study from HREC Investment Advisors that covers more than 500 hotels located in Orange, Osceola, Seminole, Polk, and Lake Counties.

According to the HREC study, 71% of the hotel transactions in 2012 were "single-asset sales" versus 55% in 2011. Of the remaining transactions, six hotels traded as part of a portfolio sale or as a result of mergers and acquisitions activity—up from two in 2011. Two hotel properties traded thorough foreclosure sale to a third party—down from seven in 2011. And four hotel changed hands through foreclosure—down from eight in 2011.

“Within Central Florida, the market has been very efficient in working its way through a significant number of highly distressed hotel assets,” says Paul Sexton, head of HREC's Orlando office. There are still lender controlled assets in the market, but they are being held primarily because valuations continue to rise."