International Investors Still Heart US Hotels
Despite mega trophy buys last year, US deals weredown overallthank concerns over the fiscal cliff and impending tax increases. Investors were uncertain about what to do or just simply couldn't get deals done, says Savills managing director Dave Durbin. While weaverted a crisisat year's end, there's still no debt ceiling compromise in sight and investors won't be aggressive until that clarity is achieved, he says. (Anyone have the number to LaToya Jackson's Psychic Hotline handy?) Only then will we see supply grow to accommodateimproving market demand.
This unease hasn't dimmedinternational investor interest, however. Dave reports that the appetite that started in New Yorkhas spread to the top 10 hotel markets. (We'll call them the hotel foodies.) Groups completing the majority of the offshore deals are primarily Middle Eastern and Asian, like Sahara India Pariwar, which snapped up a majority interest in NYC's Plaza Hotel, above. Want to hear more?Dave will be speaking at this year'sBisnowLodging Investment Summit(we call itBLIS for short), atwo-day national conference in Washington, DC onApril 24 and 25.Register now for early-bird prices!