M&A and Other Trends for Q3 2012
- Q3 2012 US hotel transaction volume was $2.6 billion, up from Q2 2012's $1.5 billion, but lower than Q3 2011's $2.8 billion.
- The number of US luxury/upper upscale hotel transactions were almost unchanged QoQ and YoY
- There was a pickup in multi-asset sales
- Relative to a 6 quarter trailing average, US average price per key (APPK) in the Upper Upscale segment fell 29% to $190k - One reason that Upper Upscale pricing is down is that many of the hotel transactions had a lot of deferred capex and were in secondary cities
- There were two transactions that surpassed $1MM in APPK: New York's Plaza Hotel and the Cavendish Hotel in London
- Starwood Hotels sold the W Los Angeles and the W Chicago to Pebblebrook Hotel Trust and Chesapeake Lodging Trust, respectively
- According to Fitch, August hotel delinquency rate was 10.82%, slightly lower than May's 11.15%. The delinquency rate remains below the 14% seen in Q3 2011.
- According to STR, YTD cap rate has been 9.3%. The average interest rate is 4.25%.
