Not as robust as earlier in the year but much higher than 2010
Market M&A Trends for Q3
- Q3 US hotel transaction volume fell to $3BN from $4BN in Q2 and $5BN in Q1. But 2011 YTD volume is almost double that of 2010’s total.
- Q3 US Upper Upscale Hotel Volume tumbled 65% QoQ as there were fewer transactions and a couple of fire-sales. Average Price per Key fell to $250k in Q3.
- REITs were not as active; JVs controlled much of the market
- Portfolio deals picked up steam
- The most prominent deal was the sale of W London at an average price per key of $1.6MM
- Hotel delinquencies continue to trend around the 14% level.
- According to SHO CEO Kenneth Cruse, CMBS spreads have widened by 60-100bps from a rate of LIBOR+242bps a year ago
Luxury Segment
- Average Price per Key
- Q3 2011
- US average: $632,270 (2 transactions)
- Other average: $858,612 (2 transactions)
- Q2 2011
- US average: $406,250 (4 transactions)
- Other average: $788,461 (3 transactions)
- Q3 2011
Upper Upscale Segment
- Average Price per Key
- Q3 2011
- US average: $253,736 (8 transactions)
- Other average: $338,661 (4 transactions)
- Q2 2011
- US average: $355,382 (13 transactions)
- Other average: $250,152 (2 transactions)
- Q3 2011