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    MARKET EDGES

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Big jump on transaction volume in Q1

Market M&A Trends for Q4 and Year 2010

  • Q1 US transaction volume soared close to $5BN, more than half of total volume for 2010
  • Biggest deal: Ashford Hospitality’s acquisition of 28 Highland Hospitality hotels for $1.28BN in a foreclosure deal
  • Consistent with 2010, REITS (existing and newly formed) dominated the M&A market in Q1
  • Hotel delinquencies have stabilized. The latest data from Fitch showed hotel delinquencies in February hit 14.3%, a rate similar to Q4 2010

Luxury Segment

  • Average Price per Key
    • Q1 2011 Global average: $279,697
      • US average: $289,733 (4 transactions)
    • Q4 2010 Global average: $998,687.  In Q4, there were several sales in Europe (London, France, Dubai) that surpassed $1MM in average price per key.
      • No US transactions

Upper Upscale Segment

  • Average Price per Key 
    • Q1 2011 Global average: $250,532 
      • US average: $261,559 (20 transactions)
    • Q4 2010 Global average: $257,295
      • US average: $291,945 (7 transactions)

Q1 HOTEL TRANSACTIONS UPDATE - hotel trans