Fred Grapstein has been elected as the new chairman of the Hotel Association of New York City. Grapstein, executive vice president of Vornado Realty Trust’s Hospitality Group, has been a board member of the Hotel Association for more than five years and a longtime member of the Hospitality Council of New York. He brings a wealth of financial and operating experience to the role.
For more notable hospitality comings and goings that took place this past week, click here.
According to the recent U.S. Transaction Trend Report from Lodging Econometrics, major mid-market brands had the highest U.S. hotel sales volume in 2017. The data is based on sales with a price reported into the public domain.
The Hilton brands with most hotel sales by price were Hilton Garden Inn with an average selling price per room (ASPR) of $193,732 for 16 hotels, Homewood Suites with an ASPR of $189,342 for 13 hotels, and Hampton Inn & Suites with an ASPR of $114,383 for 29 hotels.
The Marriott brands with the most hotels sold in 2017 were Residence Inn with an ASPR of $152,672 for 31 assets, Courtyard with an ASPR of $146,981 for 45 hotels, and Fairfield Inn with an ASPR of $113,751 for 17 hotels. For IHG, the top-selling brands were Holiday Inn with an ASPR of $110,568 for 12 hotels and Holiday Inn Express at an ASPR of $88,121 for 34 hotels
Including all chain scales and brands in their portfolio, Marriott had the most hotel sales in 2017 with 167 assets sold, followed by Hilton with 89 hotels, and IHG with 67 hotels sold.
According to analysts at Lodging Econometrics, through the end of 2017, the U.S. markets with the largest number of hotels with selling prices reported into the public domain were:
- Orlando with 21 hotels and an average selling price per room (ASPR) of $96,402;
- New York with 19 hotels sold and an ASPR of $426,443;
- Washington, D.C., also with 19 hotels sold but a lower ASPR of $260,681;
- Seattle with 15 hotels sold and an ASPR of $236,958;
- Phoenix, also with 15 hotels sold but an ASPR of $205,265; and
- Atlanta with 15 hotels sold and an ASPR of $136,321.
In 2017, hotels recorded 827 transactions with selling prices into the public domain, according to analysts at Lodging Econometrics. The average selling price per room for the period was a reported $141,479, down from the peak of $154,230 set in 2015, but up 8.6 percent year-over-year.
Excluding mergers and acquisitions, the industry recorded $15.3 billion in purchases of hotel assets and property transfers in 2017, down substantially from the peak established in 2015 of $26.1 billion. REITs were the largest net investors for their portfolios with $4.2 billion in investments, followed by privately held equity funds with a volume of $4.1 billion.
A recent report from Lodging Econometrics shows that 1,370 projects totaling 143,344 rooms in the U.S. hotel construction pipeline are extended-stay projects. Of these, 424 projects/46,551 rooms are under construction, accounting for 27 percent of all hotel projects under construction in the total pipeline. An additional 605 projects/64,121 rooms are scheduled to start construction in the next 12 months and 341 projects/32,672 rooms are in early planning stages.
Home2 Suites by Hilton currently leads the extended-stay pipeline with 355 projects/37,188 rooms. The second largest brand in the extended-stay pipeline is Marriott’s Towneplace Suites with 208 projects/21,299 rooms, followed by Marriott’s Residence Inn brand with 199 projects/24,680 rooms.
In 2017, 239 extended-stay hotels with 26,586 rooms opened in the United States. By the end of 2018, 332 extended-stay U.S. hotels totaling 35,167 rooms are expected to open, with another 332 extended-stay projects and 35,829 rooms expected to open in 2019.
PORTSMOUTH, NH—By the end of 2018, the census of open and operating U.S. hotels is expected to grow by 2.5 percent to 1,145 projects/130,209 rooms open, according to published reports from Lodging Econometrics. The largest chain scale—the upper midscale hotel segment—will open 514 projects/50,165 rooms—45 percent of all new openings. Nearly half of all new openings—556 projects/59,309 rooms—will be in suburban locations and the U.S. market with the most anticipated openings is New York with 57 projects/9,534 Rooms.
In 2019, the census is expected to grow another 2.5 percent by opening 1,209 projects/137,546 rooms, about 6 percent more projects than are anticipated to open in 2018. In 2019, New York is again the top market for new hotel openings with 37 projects/4,601 rooms. The upper midscale segment is expected to remain the top chain scale for new openings with 573 projects/55,660 rooms and suburban markets may see 661 projects/69,715 rooms open up.