David Auerbach’s Post

Instead of buying companies outright, brands like Marriott International and MGM Resorts International are teaming up to offer mutual benefits without the hefty price tag. Peggy Roe of Marriott International, Christopher Hartley of Global Hotel Alliance, Brad Rahinsky of Hotel Equities and Daniel Lesser of LWHA Asset Management Group give us their takes on partnerships in this piece. Daniel Lesser #HOTELS #hotelnews #hospitalityindustry #hotelindustry #hospitalitynews #partnerships #hoteldeals

We are strongly going into acquisition mode for limited service to full service franchised hotels. What I'm seeing so far is interesting. I don't know if it is the owners or the brokers 1. 1st Hotel. This hotel is worth $8m so the broker is asking $8m. The franchise says full PIP is needed at around $2m. The owner won't back off of the price. 2. 2nd Hotel. This hotel is an older outside corridor hotel that makes decent $$. The area supports a 3.4x gross. This hotel, which is an economy brand is listed at 4.2x gross. Interesting. What are the other buyers seeing? #hotelowners #hospitality

My story from Hilton's latest earnings call. CEO Chris Nassetta talked about how the M&A environment might be “different” now for a company that has been all organic growth during his tenure. He also gave more details on Hilton’s partnership with Small Luxury Hotels of the World. #hotelinvestmenttoday #hotel #hospitalitynews #hotelnews #hospitalityindustry #hospitality #luxuryhotels #hilton

"Sale of Miami Airport Hotel for $16.2M" Read the full article below..

"1 Hotel Central Park Acquired by Host Hotels for $265M" Read the full article below..

In light of Hyatt’s reported pursuit of Standard International, hospitality pros shared with me some key advantages of hotel brand acquisition — as well as the obstacles it poses. This deal, particularly, could help Hyatt Hotels Corporation expand in the #boutiquehotel space, which has seen significant growth of late, according to The Highland Group’s Boutique Hotel Report 2024, which I got a sneak peek at. More generally, hotel brand #acquisition can help expedite portfolio growth and build #loyalty. But there are some challenges that come along with acquiring an already established brand. Find out what you need to know about hotel brand acquisition in my latest for Hotel Dive. Thanks for your insights, Yariv Ben-Ari. https://lnkd.in/eFy_Vqjx

"3 GA Hotel Deals from Hunter Brokers" Read the full article below..

Happy New Year! Great way to begin the new year; feature on Sir Rocco Forte, Founder, Rocco Forte Hotels by Jeff Weinstein Hotel Investment Today. Must read. I can say from firsthand experience and knowledge, Sir Rocco knows how to create and operate luxury hotels. I had the privilege of working for him. This is news on many levels, watch for expansion in 2024! Congrats RF Hotels team. #hospitality #hospitalityindustry #capital #hospitalitymanagement #hospitalitynews #capital #development #realestate #commercialrealestate #hotels

The leading headline about hotel transaction volume continues to be year-over-year declines, yet some areas are more active than others. East Coast locations led the charge, and Miami achieved the number one spot. Some of the top sales volume locations were primarily attributed to one large transaction. During the first quarter of 2024, $3.4 billion in disclosed transactions occurred in the US, although estimating undisclosed prices it was $4 billion. Some hotels are in non-disclosure states and, therefore, may not be represented. The top 10 highest destinations represent 44% of the total volume. In Miami, the 423-room luxury class, The Ritz-Carlton Key Biscayne Miami, sold in January for $400 million, or $1.4 million per key. Brookfield has sold its majority interest in the property to Gencom, giving Gencom full ownership of the property. The price and price per key make it the highest hotel transaction in the first quarter. The total price represents nearly 90% of the total sales volume in Miami. In Boston, one single transaction represented the entire first quarter sales volume. The Wyndham Boston Beacon Hill sold for $125 million, or $411,000 per key to RLJ Lodging Trust. In Los Angeles, the sale of the 176-room Residence Inn Los Angeles LAX Manhattan Beach for $68 million, or $386,364 per key, represents over 80% of the first quarter sales volume. Apple Hospitality REIT purchasing the 234-room AC Hotel Washington DC Convention Center for $116.8 million, or $499,145 per key in March, represented nearly 70% of first quarter transaction activity. New York ranked second in the first quarter in hotel sales volume, with eight hotels generating $236 million. The East River-Queens/Brooklyn West area had the highest sales volume in the destination, reaching nearly $94 million among three hotels. One of these was the 104-room Trademark Collection by Wyndham Brooklyn, which was traded in a bankruptcy auction in March for $34.9 million, or $335,398 per key. Atlanta and Denver were the only locations to achieve double-digits in the number of transactions, with Atlanta at 13 hotel transactions and Denver at 10. In Atlanta, only branded hotels sold. Over 70% of the first quarter's $102 million transaction volume came from eight Marriott and Hilton middle-tier class hotels. The transaction prices in this category ranged from $15 million to $21 million, with the price per key ranging from $76,000 to $167,000. The top three highest-priced transactions occurred in the Atlanta airport area. Denver followed a similar trend, with 66% of the $82 million in first quarter volume generated by four middle-tier hotels trading. The remaining 34% was from six economy hotels. Approximately half of the first quarter sales volume was in the Denver Tech Center among three hotels. One included the 180-room Hilton Garden Inn Denver Tech Center in January. Chatham Lodging Trust sold the hotel to Peachtree Hotel Group for $18 million, approximately $100,000 per room.

Q1 2024 Arizona Hotel Industry Overview. The first quarter saw a mix of challenges & achievements for the hotel industry. While the total number of hotel transactions over $10 million decreased by approximately 23% from the previous quarter, and the total dollar volume fell by roughly 18%, the average sale price per room saw an increase of 5%. Here’s a list of notable Arizona Sales Transactions: • The Arizona Biltmore / $705 million ($1 million a key) • Aloft Glendale Westgate / $23.7 million ($237k a key) • Country Inn & Suites Phoenix / $11.2 million ($127k a key) • Sleep Inn & Suites Tempe / $13.3 million ($184k a key) • Super 8 Tempe / $15 million ($272k a key) Arriba Capital is continuing to provide debt solutions for hoteliers. Contact us today to discuss financing your next project. #ArribaCapital #RealEstateInvestment #HotelIndustry #MarketInsights #Q12024Update