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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 

Delinquency rate

  • 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.

Q2 2013 GLOBAL HOTEL TRANSACTIONS (UUP/LUXURY)  - hotel1

Q2 2013 GLOBAL HOTEL TRANSACTIONS (UUP/LUXURY)  - hotel2

Q2 2013 GLOBAL HOTEL TRANSACTIONS (UUP/LUXURY)  - hotel3

Q2 2013 GLOBAL HOTEL TRANSACTIONS (UUP/LUXURY)  - 7 1 2013 4 47 37 PM