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

ESA Launches Client Connect: All-in-One Business Travel Hub

ESA launches ‘Client Connect’ for business travel

Summary:

  • Extended Stay America launched “Client Connect”, a business travel program for extended-stay travelers.
  • The program includes account management, long-stay savings, flexible policies, streamlined booking and a Direct Bill Program.
  • Client Connect leverages ESA’s 700+ locations offering amenities for extended stays.

EXTENDED STAY AMERICA launched "Client Connect", a business travel program for extended-stay travelers. The platform was developed for business travelers needing stays of weeks or months, with solutions for construction crews, traveling nurses, military personnel and others with long-term needs.

Keep ReadingShow less
Trump’s Proposed Visa Fee Threatens Seasonal Hospitality Workforce

Report: Trump visa fee sparks summer staffing fears

Summary:

  • Trump’s proposed $250 Visa Integrity Fee faces pushback from groups relying on seasonal J-1 workers from Latin America and Asia.
  • J-1 visa holders often work as housekeepers, amusement park staff, and lifeguards from pre-season through Labor Day; more than 300,000 use the visa annually.
  • DHS and the State Department have not clarified how the fee will be implemented or who qualifies for a refund.

A $250 VISA Integrity Fee in President Donald Trump’s Big Beautiful Bill is drawing criticism from groups that rely on seasonal workers from Latin America and Asia on J-1 and other visas, Newsweek reported. The organizations warn the cost, though sometimes refundable, could reduce the summer workforce that supports U.S. beach towns and resorts.

Keep ReadingShow less
Wyndham & Grubhub Offer Free Delivery to Guests & Staff

Wyndham, Grubhub offer free delivery to guests, staff

Summary:

  • Wyndham Hotels & Resorts is partnering with Grubhub to offer free product delivery to guests and staff at nearly 6,000 U.S. hotels across 20 brands.
  • A Grubhub account is required to activate the complimentary Grubhub+ membership; no credit card is needed and the membership does not auto-renew.
  • Wyndham recently deployed Elavon’s cloud payments interface to more than 6,000 U.S. and Canadian franchisees.

WYNDHAM HOTELS & RESORTS and Grubhub, an online ordering and delivery platform, will offer item delivery to guests and staff with no delivery fees and other benefits. The service is available at nearly 6,000 U.S. hotels across 20 brands, with orders placed through the Grubhub app on-site or by scanning a hotel QR code.

Keep ReadingShow less
U.S. Hotel Construction Hits 20-Quarter Low in June

CoStar: Hotel construction drops in June

Summary:

  • U.S. hotel rooms under construction fell year over year for the sixth straight month in June, hitting a 20-quarter low, CoStar reported.
  • About 138,922 rooms were under construction, down 11.9 percent from June 2024; the luxury segment had 6,443 rooms, up 4.1 percent year over year.
  • Lodging Econometrics recently said Dallas led all U.S. markets in hotel construction pipelines at the end of the first quarter, with 203 projects and 24,496 rooms.

THE NUMBER OF U.S. hotel rooms under construction declined year over year for the sixth straight month in June, reaching a 20-quarter low, according to CoStar. Additionally, more than half of all rooms under development are in the South, mostly outside the top 25 markets.

Keep ReadingShow less
G6 Hospitality Launches 24/7 Guest Support From August 1
Photo credit: G6 Hospitality

G6 launching 24x7 guest support on Aug. 1

Summary:

  • G6 Hospitality will launch 24x7 guest support on Aug. 1, expanding the current 18-hour window.
  • Escalations from phone, email and social media will be handled promptly by trained staff.
  • The service supports G6’s tech and service investments, including the AI-powered My6 app.

G6 HOSPITALITY, PARENT of Motel 6 and Studio 6, will launch a 24x7 customer support service for guests starting Aug. 1. The service extends the previous 18-hour window to full-day availability via phone, email and social media.

Keep ReadingShow less