While capitalization rates barely budged, the average sales price per room for full-service hotels soared between 2009 and 2012, according to a new study from CBRE Hotels. According to the report, in the four-year period the average sales price of full-service hotels rose from $102,211 per room to $191, 109, an increase of 86.9%. Cap rates for full-service transactions remained flat, however, moving from 8.00% to 8.03%.
The per-room sales price for limited-service hotels rose a more modest 10.9%, from $57,686 to 2009 to $63,991 in 2012, while cap rates increased by 21 basis points, from 9.46% to 9.67%.
The room revenue multiplier metric also revealed a divergence between sales of full-service and select-service properties. For full-service hotels, the room revenue multiplier increased from 3.47 to 4.55, which CRBE Hotels views as evidence of stronger investor appetite for this asset class. On the other hand, the room revenue multiplier for select service was relatively flat, moving downward from 3.36 in 2009 to 3.08 last year.
Hotels in some warm-weather destinations can expect higher occupancies this Easter weekend, according to data from TravelClick. The firm, which provides forward-looking booking data based on reservations on the books at hotels, said occupancies in Atlanta should climb 51.1% this weekend, compared with Easter weekend last year (6-9 April). Other Sunbelt cities with higher projected occupancies include Orlando (+12.4% over the 2012 Easter weekend), Los Angeles (+11.6%), Miami (+9.8%) and San Diego (+7%).
Further north, Philadelphia is projected to see a 14.4% occupancy increase this weekend. Occupancy in New York will rise 1.8%, while it is expected to fall by 16.6% in Boston.
The Canadian hotel industry experienced positive results in the three key performance metrics during the week of 17-23 March, according to data from STR, the parent company of HotelNewsNow.com.
In year-over-year comparisons, occupancy rose 4.9% to 63.4%, average daily rate was up 1.8% to $126.31 Canadian dollars and revenue per available room increased 6.7% to CA$80.03.
Four provinces achieved RevPAR increases of more than 10%: Newfoundland (+13.8% to CA$95.78); Quebec (+13.8 % to CA$78.31); Alberta (+11.2% to CA$99.07); and Ontario (+10.1% to CA$75.14). Prince Edward Island fell 31% in RevPAR to CA$24.66, posting the largest decrease in that metric.
San Francisco had 16.5 million visitors in 2012, up 1% from 2011, the San Francisco Travel Association reported yesterday. Visitor spending increased by 5.5% to $8.9 billion.
Convention bookings in the city are at 48% of goal for the year, and the association says the city is on target to reach its goal of 2.1 million convention-related booked room nights.
Developer R.C. Hendren plans to build a 43-story mixed-use tower that includes a 1,500-room hotel near the Washington State Convention Center, according to a report in the Seattle Post-Intelligencer.
In addition to the hotel on the upper 37 floors, the building will include a six-level podium that will contain the hotel lobby, residential units, up to 40,000 square feet of retail and 150,000 square feet of meeting and ballroom space. The hotel is scheduled to open in early 2017.
According to a news release from Visit Seattle cited in the story, the new complex would help offset the “relatively small size and lack of available dates” at the convention center. According to the report, Seattle had to turn away $1.6 billion in convention business since 2008 due to lack of available dates or capacity constraints.
Compiled by Ed Watkins.