Hunter Hotel Advisors brokered the sales of more hotels in 2019 than in any year in its history.
Sellers and buyers that generated $1.2 billion under Hunter’s guidance were a mixed bag and included institutional firms, private investment groups and hotel companies.
Many hotel brokers expect to tally similar results, making 2019 one of the most active years in hotel transactions in the U.S.
Industry analysts we interviewed expect 2020 to be an even busier period of hotel investment in part because private investors will continue to recycle their capital and shop for places to stash their cash.
This episode of Lodging Leaders takes a look at the history of hotel transactions last year as well as the whole past decade, including the growth of REITs, the emergence of private equity and the expansion of ownership groups that aggressively grew their portfolios with branded select-service assets. We also explore what might lie ahead this year as hotels in many major markets experience a slowdown in business.
We talk to Teague Hunter, CEO of Hunter Hotel Advisors in Atlanta; Lou Plasencia, CEO of The Plasencia Group in Tampa, Florida; Daniel Lesser, president and CEO of LW Hospitality Advisors in New York City; Kevin Mallory, senior managing director of CBRE Hotels in Chicago; and Brian Waldman, executive vice president of investment for Peachtree Hotel Group in Atlanta.
Resources and Links
Lodging Econometrics has tracked the hotel industry since 1998. Its global database includes new-hotel pipelines as well as renovations and brand conversions. Hotel franchisers once eager to launch new brands are focused on converting existing hotels because it’s a faster way to recover revenue lost to the COVID-19 pandemic than through new construction. In Episode 346, Lodging Leaders explores the increasing number of conversions in the U.S. hotel industry and what owners and operators need to consider before repositioning an asset.
In the first few months of the COVID-19 pandemic in the U.S., financiers anticipated a swell of distressed hotel businesses. Some raised rescue funds to respond to what they thought was a pending crisis. Though there are financial rescues taking place, the level of such activity is far below what industry advisers and fund managers expected. Commercial real estate investors positioned to act in the early days of the pandemic held off and are now just beginning to unleash their cash hoards totaling billions of dollars. Episode 345 of Lodging Leaders podcast explores the state of capital investment in the hotel industry.