Ten-X Online Platform Closes $200M In Hospitality Transactions In The First Half Of 2016
Ten-X’s continued growth in popularity is proof positive commercial real estate is still shifting toward the use of technology. This month, the leading online real estate marketplace announced its platform was used to close on 50 hospitality assets totaling roughly $200M in the first half of 2016.
The transactions—which took place between January and May—include the sale of a $10M Courtyard by Marriott in Brunswick, GA; a $6.7M DoubleTree by Hilton in Santa Fe, NM; and the sale of a Holiday Inn Express in Pittsburgh for $6.1M.
“Our ability to close transactions—while hospitality sales volume dropped nationwide—speaks to the fact that many brokers see us as a value-add tool to vastly expand their pool of buyers in even the most challenging market,” Ten-X hospitality group managing director Anthony Falor tells Bisnow.
The company’s hospitality division broke records last year, closing 117 hotel transactions that exceeded $461M in sales proceeds—double its $253.3M in 2014 sales proceeds.
Since the sale of its first hotel in 2010, Ten-X has used its online platform to close approximately $2B in hospitality deals. This year, the company projects transactions will remain strong despite the huge drop in hospitality transactions nationally. In Q1, the national volume of hospitality transactions plummeted by 59% compared to the previous quarter and 61% from Q1 '15.
Ten-X attributes its strong transaction numbers to the growing popularity of online marketplaces.
“The ability to transact deals online, via auction and non-auction formats, while also helping to avoid re-trades, provides an easy and efficient way to divest of assets,” Anthony tells us. “(It also helps) sellers and brokers tap into a pool of qualified international investors. When the bid and the ask spread widens, brokers are looking to us for validation of the market. That helps sellers feel convinced and confident that the market spoke, based on the end result with us.”