Similar trend to Q1
Upper upscale (UUP) & Luxury Transaction Trends for Q2 2013
- Q2 2013 worldwide hotel transactions (UUP & Luxury brands) was $2.0 billion, similar to Q1 2013's $2.0 billion but lower than Q2 2012's $2.7 billion.
- The number of US luxury/UUP hotel transactions (where price was disclosed) was 12 in Q2 2013 compared with 7 in Q1 2013 and 6 in Q1 2012.
- The number of non-US luxury/UUP hotel transactions (where price was disclosed) was 8 in Q2 2013 compared with 7 in Q1 2013 and 10 in Q2 2012.
- As usual, REITs were very active.
- HST bought Hyatt Place Waikiki for $325k APPK (average price per key) and HOT sold W New Orleans for $158k APPK
- Several multi-asset deals with one large M&A deal in the Upscale segment: Apple REIT Six merged with BRE Select Hotels (an affiliate of Blackstone);
- Relative to a two-year trailing average, US average price per key (APPK) in the UUP segment slipped 11% at $237k. Non-US APPK in the UUP segment rose 39% to $465k
- According to Fitch, the hotel delinquency rate in June was 8.4%, higher than that seen in March 2013. However, the delinquency rate remains well below the relative high of 14% seen in Q3 2011.