Contact Us

Hotel Sales Are Down From Last Year, But 2017 Looks Promising

Waldorf Astoria hotel in New York City, bought by Anbang for $1.95B in 2014

In the first half of 2016 investors worldwide spent less than half as much money trading hotel properties as they did in 2015. Still, there are reasons to expect next year to be better.

Investors bought and sold $12.7B worth of hotel properties during the first six months of 2016, down 55% from 2015, according to data from Real Capital Analytics. REITs have largely been on the sidelines after watching their stocks fall after years of quick growth, making trophy property transactions scarce, National Real Estate Investor reports.

But looking ahead to next year, experts expect private equity funds that bought hotels near the start of the recovery to begin selling as they near the end of the typical five-year holding period. International investors are likely to be more active next year, especially considering how Anbang Insurance, a Chinese firm, fueled one of the largest hotel transactions this year with its purchase of Strategic Hotels & Resorts from Blackstone. [NREI]