STR Analytics

Almost US$6 billion in hotel transactions occurred in the U.S. during the first half of 2012, according to data from the Hotel Transaction Almanac Midyear 2012 Update, a report from STR Analytics and the Hotel Investment Barometer.

"The investment landscape for hotels has obviously changed since last year," said Steve Hennis, director at STR Analytics. "Deal flow has tapered since 2011, particularly in the luxury segment. Additionally, there has been a shift in buyer strategy to some degree with fewer distressed sales and less activity by real estate investment trusts (REITs)."

Key findings from the Hotel Transaction Almanac Midyear Update:

  • Only 13 percent of transactions involved distressed assets, a sharp decline from 2011 when almost one out of three asset trades included struggling properties.
  • Only 16 percent of hotel acquisitions were by REITs, a noticeable decline from 2011 when 35 percent of purchases were by REITs.
  • The average room revenue multiplier was 3.9, a modest drop from the average multiplier of 4.2 in 2011.
  • Surprisingly, the average cap rate declined to 9.2 percent in 2012 from 10.5 percent in 2011.

The Hotel Transaction Almanac is an overview of historical trends in U.S. deal volume and pricing. It includes aggregate breakdowns by region, property class and location type for numerous key metrics. The Hotel Transaction Almanac combines STR Analytics' in-house transaction database with that of data partner Hotel Brokers International (HBI) to create a comprehensive hotel transactions report. The report also includes valuation parameters including price per key, room revenue multiplier, additional capital invested, cap rate and financial terms including interest rates and loan-to-value ratios. The hotel Transaction Almanac will be produced on an annual basis going forward.

To order the Hotel Transaction Almanac or for more information visit www.str.com or email [email protected]. Custom reports are available by request.

About STR Analytics

STR Analytics offers the unique combination of experienced lodging industry experts augmented by the unparalleled international database compiled by STR. STR Analytic's unique resources enables the company to offer products and services to hotel owners, operators, brands, independents, lenders, investors, servicers, regulators and consultants that provide complete information regarding a particular property, portfolio, market or transaction. STR Analytics, located in Boulder, Colorado, is a division of STR and is associated with HotelNewsNow.com, STR Global and RRC Associates. For more information, visit www.STRAnalytics.com.

About Hotel Investment Barometer

Brought to you by HotelNewsNow.com, a division of STR, the Hotel Investment Barometer provides up-to-date information on who's buying hotels and who's selling; lists of active hotel lenders and financing terms; analyses of the latest trends in financing and transactions; and spotlights on individual deals. The Barometer is also home to the Data Dashboard, which compiles in one two dozen metrics real-estate pros need to know, including rates for six-month Libor, and 10-year U.S. treasuries; hotel transaction volume; average price per room; STR-provided data for supply, demand, RevPAR, ADR and much more. The Barometer is emailed to subscribers on the second and fourth Tuesdays of the month, and is also available online at www.hotelinvestmentbarometer.com. The price for a 12-month, 24-issue subscription is $495.

Rachael Spann Urie
Director, Public Relations
+1 (615) 824-8664 ext. 3305
STR