CHICAGO—Marcus and Millichap Real Estate Investment Services, the nation’s largest real estate investment services firm, closed 11 hotel transactions in the month of July totaling more than $59 million. This represented a 29 percent increase in transaction volume and a 71 percent increase in sales value over the same period in 2012, according to Gregory A. LaBerge, national director of the firm’s National Hospitality Group (NHG).
“July was a continued acceleration of what we saw in our first-half results, namely that investors continue to see optimism in this asset class, particularly when paired with attractive debt solutions.” says LaBerge. “An important leading indicator for us is the number of investors bidding for each of our exclusively listed assets, and that number continues to increase. We expect the second half of 2013 to be fruitful for both owners and prospective buyers.”
Significant transactions for Marcus and Millichap’s National Hospitality Group in July included the 87-room Holiday Inn Express and Suites in Houston, built in 2010, that traded for nearly $100,000 per room, as well as a 113-room Hyatt Place in Charleston, N.C., that closed at a 7.8 percent capitalization rate. Further underscoring the momentum of the hotel investment market, six competitive offers were generated in the closing of a 102-room Wingate by Wyndham in El Paso, TX, built in 2006.
“With more than 130 exclusively listed hospitality assets on the market nationally and 26 hotels under contract to close in the next 60 days, we remain bullish on the investment climate in the marketplace,” says LaBerge.