Following up on a blockbuster Q3, pricing and volume of hotel transactions were strong again in Q4. Positive for HOT.
Upper upscale (UUP) & Luxury Transaction Trends for Q4 2013
- Q4 2013 worldwide hotel transactions (UUP & Luxury brands) volume was a little more than $3 billion, roughly the same as last year’s quarter and below the monster $5 billion seen in Q3.
- The number of US luxury/UUP hotel transactions (where price was disclosed) was 17 in Q4 2013 - flat sequentially and 8 more than in Q4 2012.
- The number of non-US luxury/UUP hotel transactions (where price was disclosed) was 8 in Q4 2013 – flat sequentially and 5 more than in Q4 2012.
- Relative to a two-year trailing average, US average price per key (APPK) in the UUP segment fell 42% to $155k due to HST’s bargain purchase of Times Square Marriott Marquis.
- Luxury APPK was strong particularly overseas where there were several +$million APPK deals
- Bought Times Square Marriott Marquis at $10K APPK
- Sold Dallas Addison Marriott Quorum for $101K APPK
- Sold Philadelphia Marriott Downtown for $217K APPK
- Sold Courtyard Paris La Defense West – Colombes for $165K APPK
- Sold Portland Marriott Downtown Waterfront for $175K APPK
- Sold Renaissance Chicago Downtown for $251K APPK
- Sold Hyatt Key West Resort and Spa for $644K APPK
- Sold Westin San Fran Airport/ Aloft San Fran Airport for $193K APPK