Thinking of Selling?

 

The transaction market is HOT! MBA Hotel Brokers is seeing record hotel transaction activity.  In Q2 2017, MBA closed on 6 hotel transactions. Plus, we have 9 hotels currently under contract of sale.  Primarily, we are seeing sales of cash flowing hotels, with sellers motivated to sell to cash out their equity. 

 

Our experience is echoed across the hotel industry. According to Real Capital Analytics, single asset hotel deal volume grew 30% year-over-year in 2nd Quarter 2017. Hotel sales volume is increasing in secondary and tertiary markets especially. [1]

 

The RevPAR beat also goes on with moderate growth. According to STR, in the second quarter of 2017, the U.S. hotel industry reported that occupancy rose 0.5% to 69.5%, ADR increased 2.2% to $127.43 and RevPAR rose 2.7% to $88.58 when compared to Q2 2016. June brought the 88th consecutive month of RevPAR growth (+2.8%) in year-over-year comparisons. [2]

 

Cap rates are trending upward but cap rate increases have slowed. Real Capital Analytics reports that hotel “Cap rates were up only 20 bps YOY Q2’17 versus a 40 bps YOY increase in Q2’16. Full-service hotels saw cap rates at 8.0% in Q2’17 while limited-service hotels were at 9.0% cap rate. Both levels are at the long-run average for these segments”. [1]

 

One reason MBA Hotel Brokers is enjoying high transaction levels is the maturity of our great team of hotel brokers, whose depth of knowledge and experience is being recognized by many hotel companies for driving superior performance in hotel transactions.  If your portfolio needs some churning to maximize it's ROI, give us a call and we'll jump on it.  There is an old expression, “If you want to get something done, ask a busy person.”  MBA Hotel Brokers are busy, but we are selling hotels and have strong demand for more acquisitions at every level, so we are actively seeking to add to our inventory of hotel investment offerings, and would love to help you realize the highest possible results in your hotel transaction.

 

Any of MBA Hotel Brokers experienced hotel brokers can provide a complimentary hotel valuation. CLICK TO GET A FREE VALUATION

 

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Contact Us Today at (410) 489-5900 or info@mbahotels.com

 

MBA Capital Funding Inc. is a commercial mortgage and financing services firm, specializing in arranging debt and debt structures.

"Charlie Fritsch and MBA Hotel Brokers showed a patient yet tireless effort in marketing our property and their data base of potential buyers and sellers and their extensive knowledge and experience is very impressive and effective." - Seller of Country Inn & Suites, Pennsylvania