Posted 2/27/2013 - 2:48:56 PM
CHICAGO—Marcus & Millichap Real Estate Investment Services closed 78 hotel transactions in 2012 totaling $289 million.
“The hospitality industry is beginning a phase that could very well feature the best industry fundamentals in decades,” Gregory A. LaBerge, national director of the firm’s National Hospitality Group said in a statement. “Last year was Marcus & Millichap’s best year ever providing hospitality investment services to clients, and it was also one of the best operational years for hotels in recent memory.”
Highlights of last year’s transactions include the sale of a pair of Hilton Garden Inns in Birmingham, AL, The Hilton Garden Inn Liberty Park and the Hilton Garden Inn Lakeshore, that traded for a total of $22.1 million. The company also arranged sales for distressed assets, such as the sale of a 120-room lender-owned Holiday Inn in Frisco, TX, that received 26 offers in less than a week. The property commanded a 25% premium over the list price and closed to an out-of-state owner/investor five days after going under contract. It also arranged the sale of the Crystal Casino Hotel, a 250-room full-service hotel and casino situated on 15 acres between Long Beach and Los Angeles. The sales price of $16.5 million equates to $66,000 per room.
“This year, we expect to see continued investor demand for high-quality hospitality investments, some of it coming from buyers entering the market from other product types,” LaBerge said in a statement. “As a national firm that serves clients across multiple asset classes, we have cross-platform investors who want to take advantage of the hospitality sector’s higher yields.”