Individual asset sales continue to be the highlight in the hotel transaction market. Individual asset sales were up 30% YOY in July 2016, according to Real Capital Analytics. MBA Hotel Brokers announced 2 hotel sales in July, and has 3 scheduled for closing in September, and more slated for October and the fall.
RevPAR grew 3% YTD July 2016 compared to YTD 2015, according to STR Inc. Meanwhile, cap rates are steady at 9% in non-mjor markets, as reported by Real Capital Analytics.
For now, hotel buyer interest is strong, and interest rates remain low. How long these favorable sale conditions will continue, no one knows. If you are considering selling one or more hotels, the time is NOW to maximize your investment return.
MBA Hotel Brokers has 20+ years of hotel real estate experience. MBA Hotel Brokers is fully engaged with the hotel industry netwrok of buyers that are hungry for new investment opportunities. Our national yet targeted marketing campaigns give hotels full exposure to the hotel industry and consistently yeild multiple buyer offers.
MBA Hotel Brokers has increased its market share of hotel transactions, representing lenders in the sale of REO hotels, receivers in the sale of hotels in receivership, owners in short sales, and other complicated situations, as well as representing sellers of cash flowing hotel asset sales. MBA has sold hotels in 26 states, valued in the hundreds of millions of dollars and has 7 brokers across 6 brokerage offices.
Hotel values are primarily driven by the gross room revenue and the net operating income, and market performance, but also strongly influenced by the location, brand, age, condition, PIP requirements, and new hotel construction planned or underway in the market nearby. We can best determine a listing price and target sale price after reviewing the last 3 years of income and expense statements for the hotel, and identifying any add backs to the net operating income, such as current principle and interest payments, depreciation, any owner compensation or unusual expenses that won't be present for a new owner, and capital items that were expensed in one year. We like to review the latest Q.A. report and talk with the owner about the expected PIP for a buyer. Give us a call or us the links below if you are thinking of selling a hotel, and let's discuss the specific valuation factors for your hotel or hotels.
"MBA Hotel Brokers and John Downes showed perseverance and diligence in quickly locating a qualified buyer for our hotel and John constantly communicated with both parties to ensure the transaction closed. We look forward to our next deal with MBA in the near future." - Seller for Comfort Inn, Pennsylvania