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Q1 2012 HOTEL TRANSACTIONS

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.

Q1 2012 HOTEL TRANSACTIONS - UUP2

Q1 2012 HOTEL TRANSACTIONS - LUXURY2

Q1 2012 HOTEL TRANSACTIONS - hotel2