2012 off to a slow start
M&A and Other Trends for Q1 2012
- Q1 2012 US hotel transaction volume was roughly unchanged quarter-over-quarter at ~$1 billion, down significantly from Q1 2011's ~$5 billion. This has been a much weaker start than expected.
- The number of US hotel transactions in Q1 2012 was similar to Q4 2011
- US average price per key in the Upper Upscale segment rose 14% QoQ
- The European market was also unusually quiet this quarter
- Apart from some scheduled sales from Accor, the majority of the transactions involved REITs/JVs
- According to Fitch, February hotel delinquency rate dropped to 10.75% from 12.21% in January 2012.
- The decline was largely attributed to the two loans of the Innkeepers portfolio being converted to current. Hotel delinquency rates have steadily declined from 14% in Q3 2011.