Boston Park Plaza Hotel.
Among chain scales, the largest year-over-year increase in number of transactions came in the Upper Upscale segment (+32.4%), while the steepest decline was among Upscale chains (-23.7%).
BROOMFIELD, COLORADO – U.S. hotel deal volume increased 11.3% during the first half of 2018, while transaction price per room was up 12.2%, according to STR’s midyear update of the Hotel Transaction Almanac.
| Deal Volume | Price Per Room | |
| January-June 2017 | $9,084,012,000 | $196,000 |
| January-June 2018 | $10,112,740,000 | $220,000 |
| Percentage comparison | +11.3% | +12.2% |
"Transaction volume and pricing are up, while cap rates have decreased from last year,” said Joseph Rael, STR’s director of consulting & analytics. “There seems to be more optimism around the industry right now, and that of course pushes more transactions activity. There are also several high-priced assets likely to be sold in the next few months, which will significantly boost average pricing for the remainder of the year."
Other key findings from this update to the Hotel Transaction Almanac include:
- Among chain scales, the largest year-over-year increase in number of transactions came in the Upper Upscale segment (+32.4%), while the steepest decline was among Upscale chains (-23.7%).
- The two highest overall transaction prices came via the sale of the Sheraton Hotel Phoenix Downtown ($255 million) in June and the Fairmont Downtown San Jose ($223.5 million) in January.
- The two largest transactions based on price per room are the pending sales of The Plaza Hotel New York ($2.1 million) and Presque Isle Downs & Casino ($2 million) in Erie, Pennsylvania.
- Florida and New York were the busiest states for overall transactions with 24 and 20, respectively.
Tatiana is the news coordinator for TravelDailyNews Media Network (traveldailynews.gr, traveldailynews.com and traveldailynews.asia). Her role includes monitoring the hundreds of news sources of TravelDailyNews Media Network and skimming the most important according to our strategy.
She holds a Bachelor's degree in Communication & Mass Media from Panteion University of Political & Social Studies of Athens and she has been editor and editor-in-chief in various economic magazines and newspapers.
