Forecasting the Next 36 Months in Hotel Investment Strategy
The Hotel Assets Group team had the privilege of getting away for a few days last week. Much time was spent discussing the incredible year that we have had (42 transactions to date) and analyzing the expectations on the next 12, 24, and 36 months in the hotel investment world. Our new partners at Tranzon also stopped by to discuss our new strategy in on-site auctions to bolster our already heavy bank-owned, REO, and portfolio activity.
At the end of our time there, the overall consensus on current market positioning was universally the same around the room. Throughout the years that our team of brokers have been in this business, none of us have seen a market like the one we are in right now. It's not a buyer's market nor a seller's market; the lines have grayed into a pure transaction market, making the next 6 months the perfect time to both sell well-performing assets as well as invest in the same.
With 9 CAPS abounding, and room revenue multiples hanging between 2.5 and 2.75, we expect our already robust performance to gain even more steam. The reason we think this is simple: by 2015, we are expecting a flood of nearly 10,000 hotels to go to market abroad. From nearly 3,000 coming to term in the CMBS market, to the existing 1600 in special servicing with nearly 2500 more expected to default by 2015, as well as the 3,000+ loans terming out in the whole loan space, there are going to be plenty of opportunities for deals to be made in the next 36 months. If you have a portfolio of hotels and want to have a valuation completed or if you have a capital play to make, look no further than Hotel AG. With over 275 active listings, and having closed 1 hotel every 7 days for the past 21 months, we are the one-stop-shop for your hotel investment needs. Give us a call today at 770-692-1606!published: 08-20-2012