Skip to content

Search

Latest Stories

STR: Hotel transactions down 74 percent between March and May

COVID-19’s effect on hotel performance reduces market for sales

AS U.S. HOTEL performance has slipped during the COVID-19 pandemic, so did hotel transactions, according to STR. Between March and May, hotel sales were down 74 percent versus the same time the previous years.

STR’s Hotel Transaction Almanac also forecasts that the market will recover, eventually.


“The industry went from a position of record profit levels to financial distress in a matter of weeks, creating a shift in focus for those in the transactions community,” said Hannah Smith, a senior consultant at STR. “Looking ahead, we expect transaction activity to eventually pick up, while pricing will continue to decline later in the year, as investors look to acquire distressed assets at a discount. While activity in the sector will likely remain slow into the third quarter, we expect robust transaction activity late in the year, as the industry begins to see the light at the end of the tunnel.”

There was much change in the hotel market for the first five months of the year. In February, transaction volume rose 14 percent over the previous year with the total number of transactions down from 514 to 457. By March the volume was down 74 percent due primarily to a substantial decline in the number of hotel transactions, which dropped 48 percent year-to-year.

In April the number of transactions dropped 86 percent, the steepest decline with only 43 hotels sold during the month compared to 317 in April 2019. However, May saw the greatest decline in total transaction volume, down 94 percent with 68 assets sold for a total volume of $112 million as opposed to 329 hotels sold for a total of $1.8 billion the previous May.

STR compares the 2020 transactions to 2019, when there were 3,897 property sales totaling $41.5 billion, ranked behind only 2007, 2018 and 2015.

“2019 transactions were similar to previous yearly levels as investors looked to capitalize on what was still an incredibly profitable operating environment,” Smith said.  “The sale of the Bellagio contributed greatly to the total transaction volume, with the $4.25 billion purchase price representing more than 10 percent of the total transaction volume. That price is the largest single property hotel sale in CoStar Group’s database. Excluding that sale, 2019 transaction volume would have been more like 2016 and 2017 levels.”

In April, global consulting firm HVS laid out four objectives that must be achieved before hotel transactions can reach normal levels.

More for you

Global hotel construction pipeline reaches record 15,871 projects in Q2 2025, with U.S. and Dallas leading growth
Photo Credit: iStock

Report: Global pipeline hits 15,871 projects

Summary:

  • Global pipeline hit a record 15,871 projects with 2.4 million rooms in Q2.
  • The U.S. leads with 6,280 projects; Dallas tops cities with 199.
  • Nearly 2,900 hotels are expected to open worldwide by the end of 2025.

THE GLOBAL HOTEL pipeline reached 15,871 projects, up 3 percent year-over-year, and 2,436,225 rooms, up 2 percent, according to Lodging Econometrics. Most were upper midscale and upscale, LE reported.

Keep ReadingShow less
HAMA Launches 20th Student Case Competition in USA
Photo Credit: iStock

HAMA launches 20th student case competition

Summary:

  • HAMA is accepting submissions for its 20th annual student case competition.
  • The cases reflect a scenario HAMA members faced as owner representatives.
  • Teams must submit a financial analysis, solution and executive summary.

THE HOSPITALITY ASSET Managers Association is accepting submissions for the 20th Annual HAMA Student Case Competition, in which more than 60 students analyze a management company change scenario and provide recommendations. HAMA, HotStats and Lodging Analytics Research & Consulting are providing the case, based on a scenario HAMA members faced as owner representatives.

Keep ReadingShow less
Stonebridge hotel management expansion
Photo credit: Stonebridge Cos.

Stonebridge adds Statler Dallas to managed portfolio

Summary:

  • Stonebridge Cos. added the Statler Dallas, Curio Collection by Hilton, to its managed portfolio.
  • The hotel, opened in 1956 and relaunched in 2017, is owned by Centurion American Development Group.
  • The property is near Main Street Garden Park, the Arts District and the Dallas World Aquarium.

STONEBRIDGE COS. HAS contracted to manage the Statler Dallas, Curio Collection by Hilton in Dallas to its managed portfolio. The hotel, opened in 1956 and relaunched in 2017, is owned by Centurion American Development Group, led by Mehrdad Moayedi.

Keep ReadingShow less
GSA keeps FY 2026 federal per diem lodging and meal rates flat

Federal per diem rates stay flat for FY 2026

Summary:

  • GSA will keep federal per diem rates the same for FY 2026.
  • The lodging rate stays $110 and meals allowance $68.
  • AHLA raised concerns over the impact on government travel.

THE U.S. GENERAL Services Administration will keep standard per diem rates for federal travelers at 2025 levels for fiscal year 2026. The American Hotel and Lodging Association raised concerns that the decision affects government travel, a key economic driver for the hotel industry.

Keep ReadingShow less
Comfort Hotels to Host "Waffle Lounge" Pop-Up in NYC, USA

Comfort hosting ‘Waffle Lounge’ in NYC

Summary:

  • Comfort Hotels will host the one-day Waffle Lounge in New York City on Aug. 21.
  • The Union Square event runs from 12 to 7 p.m.
  • Visitors can win a one-night stay at a participating Comfort or other Choice hotel.


CHOICE’S COMFORT HOTELS is bringing its signature breakfast item to life with the Waffle Lounge, a one-day pop-up event in New York City on Aug. 21. The event, timed to coincide with National Waffle Day on Aug. 24, highlights the brand’s role in offering guests a sense of home during their travels.

Keep ReadingShow less