External Article25 June 2014
Why are Hotel REIT Acquisitions Dropping This Year?
CHARLOTTESVILLE, VA – The number of hotel deals has declined this year compared to transactions during the same period in 2013, SNL Financial reports. In addition, the deal value has dropped. It is unclear what the drivers are behind this trend-or even if it is a trend at all, as appetite by hotel REITs for assets remains strong and the year could end with strong numbers.
One reason behind the drop in deal value, though, may relate to a growing demand by companies for select-service assets, as they are percevied to deliver better value.
First, though, a look at the numbers.
SNL Financial reported that, as of June 13, there have been 24 hotel acquisitions so far this year, for a total of $1.26 billion. That compares with 32 acquisitions in the same period in 2013, totaling $1.42 billion, for a 25% decrease and an 11.3% decrease in total deal value.
Read the full article at globest.com