Chicago – Marcus & Millichap Real Estate Investment Services, the nation’s largest real estate investment services firm, closed 45 hotel transactions in the first six months of 2013 totaling more than $174 million. This represented a 29 percent increase in transaction volume and a 55 percent increase in sales value over the same period in 2012, according to Gregory A. LaBerge, national director of the firm’s National Hospitality Group (NHG).
“Based on our first-half results, we are seeing tremendous enthusiasm and investor demand for the hotel sector today, and in the foreseeable future,” says LaBerge. “The hotel investment climate continues to show dramatic improvement, thanks to operating fundamentals reaching new heights, historically low interest rates and a sustainable economic recovery. We expect the second half of 2013 to be fruitful for both owners and prospective buyers.”
Significant transactions for Marcus & Millichap’s National Hospitality Group to date include the sale of an 87-room Holiday Inn Express & Suites in Houston that traded for nearly $100,000 per room, as well as a 127-room Hyatt Place in Germantown, Tenn., that closed at $89,000 per key.
Underscoring the momentum of the hotel investment market, particularly in value-add opportunities, the 188-room Clarion Inn Tech Center in Phoenix, Ariz., generated more than 20 offers during the firm’s exclusive marketing campaign.
“With more than 130 exclusively listed hospitality assets on the market nationally and 25 hotels under contract to close in the next 60 days, our clients are excited to see what the remainder of the year brings,” says LaBerge.
With more than 1,000 investment professionals in offices nationwide, Marcus & Millichap Real Estate Investment Services is the largest firm specializing in commercial real estate investment services in the nation. Marcus & Millichap closed 6,149 transactions in 2012, the highest of any commercial real estate brokerage firm. Founded in 1971, the firm has perfected a powerful system for marketing properties that combines product specialization, local market expertise, the industry’s most comprehensive research, state-of-the-art technology and relationships with the largest pool of qualified investors nationally.