Other interesting observations from the LWHA 2017 Major U.S. Hotel Sales Survey includes:

32 major sales occurred in the State of California followed by 28 in Florida, and 12 in New York;

35 single-asset trades greater than $100 million occurred during 2017, and of those, six were greater than $300 million;

The sheer size of the largest single-asset trade of 2017, namely $1.14 billion paid for the 2,530-room Harrah's Las Vegas Hotel and Casino in Las Vegas, is noteworthy;

Of five single-asset trades in Hawaii, four were greater than $200 million each;

Five single-asset trades greater than $1 million per room transacted during 2017;

Capital recycling is evident by the fact that the following investment groups were both buyers and sellers during the year: Blackstone, Carey Watermark Investors, Chatham Lodging Trust, Highgate Holdings, Host Hotels & Resorts, Hyatt Corp., Rockwood Capital, Summit Hotel Properties Inc., Sunstone Hotel Investors Inc. and Xenia Hotels & Resorts Inc.

The Tax Cuts and Jobs Act, which is now a law, is generating considerable optimism with anticipation that a pro-growth environment will stimulate economic expansion and further increase demand for transient business and group hotel accommodations in the United States. Given the daily leasing and constant repricing of hotel rooms, the sector represents a well-positioned hedge for any downside risk if the national economy enters a period of "overheating" characterized by rising inflation and higher interest rates.

Instant Insights /

Lodging Sees Another Year of Record-Setting Metrics

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