Scarce US transactions in Q4 but 2011 was a better year overall
Market M&A Trends for Q4
- Q4 US hotel transaction volume fell to $1BN from $3BN in Q3 2011 and $4BN in Q2 2011. But US transaction volume ended 2011 almost doubling that of 2010’s total.
- The number of US hotel transactions in Q4 was significantly lower QoQ
- US Average Price per key in the Upper Upscale segment has dropped steadily since Q2 2011
- The European market, particularly in the UK, was more active than that of the US
- REITs/JVs accounted for the majority of the market activity
- Accor took part in several deals as part of the firm’s Group Asset Management strategy
- According to Fitch, hotel delinquencies continue to improve as November’s 12.7% rate was below September’s 13.3%
Luxury Segment
- Average Price per Key
- Q4 2011
- US average: $224,785 (3 transactions)
- Elsewhere average: $621,382 (6 transactions)
- Q3 2011
- US average: $632,270 (2 transactions)
- Elsewhere average: $858,612 (2 transactions)
- Q2 2011
- US average: $406,250 (4 transactions)
- Elsewhere average: $788,461 (3 transactions)
- Q4 2011
Upper Upscale Segment
- Average Price per Key
- Q4 2011
- US average: $207,026 (6 transactions)
- Elsewhere average: $348,667 (5 transactions)
- Q3 2011
- US average: $253,736 (8 transactions)
- Elsewhere average: $338,661 (4 transactions)
- Q2 2011
- US average: $355,382 (13 transactions)
- Elsewhere average: $250,152 (2 transactions)
- Q4 2011
Chain Scale
L: Luxury
UU: Upper Upscale
U: Upscale
M: Midscale
E: Economy