Hotel Management August 2011 : Page 1
■ ➔ SUPPLY.. pulse Source: PKF Hospitality Research Cities lead 2011 supply growth. The Leading Hospitality News Authority Since 1875 HospitalityWorldNetwork.com Vol. 226, No. 10 | August 2011 New York 6.9% Nashville 4.8% Pittsburgh 4.2% SEE PAGE 14 FOR MORE TRENDS & STATS TRANSACTIONS San Diego deals lead U.S. sales Deal for the city’s Manchester Grand Hyatt is the biggest U.S. sale so far this year By Michele Howe CONTRIBUTING EDITOR STARWOOD HOTELS & RESORTS WORLDWIDE S AN D IEGO –The sale of the Sè Hotel in San Diego for $49 mil-lion to an affiliate of Kimpton Hotels & Restaurants, which was announced in mid-July, is the lat-est in a spate of deals in California and, particularly, in San Diego. Together with New York, San Diego is the most active U.S. hotel sales transaction market so far this year with a combined 17 major deals totaling $3.1 billion for the two markets, roughly half the to-tal dollar volume for the country, according to LW Hospitality Ad-visors in its 2011 mid-year report. San Diego has always been per-ceived as a highly desirable venue for group meetings and conven-tions as well as leisure patronage. While it suff ered during the down-See San Diego | page 30 Pebblebrook Hotel Trust purchased the 450-room Westin Gaslamp Quarter, San Diego, in April for $110 million. ‘REIT mafi a’ leads the charge Real estate investment trusts still the leaders when it comes to acquisitions and dispositions, but can they stay on top forever? By Stephanie Ricca EDITOR IN CHIEF N ATIONAL R EPORT –Lodging real estate investment trusts have dominated the hotel transactions market for the last 12 months and while that activity remains strong, some say the playing fi eld is starting to level out for non-REIT buyers. One year ago, newer REITs like Chatham Lodging Trust, Pebblebrook Hotel Trust and Chesapeake Lodging Trust led the charge in acquisitions that injected much-needed capital into the industry. Today those players and more remain ac-tive, targeting properties in gateway cities they can scoop up at low cost of capital, leading to “REIT envy” among more traditional buyers that can’t compete. “Most REIT transactions are in major, urban, gateway 723 lodging REIT acquisitions by company January 2010 to March 2011 ➊ Ashford ➋ Host ➌ Pebblebrook ➍ Sunstone ➎ Apple REIT $1.289 billion $1.236 billion $1.044 billion $981 million $951 million Source: Real Capital Analytics, The Plasencia Group ONE-ON-ONE DENIHAN HOSPITALITY GROUP’S ELLEN BROWN Total acquisitions by REITs $7.7 billion Advisory experience leads to role in acquisitions and development | See page 18 See ‘REIT mafi a’ leads the charge | page 30 ■ ➔ TRENDS & STATS. inside this issue DEVELOPMENT. TECHNOLOGY. Convenience and control Mobile applications help hotels reach guests, increase sustainability and improve overall profi tability. PAGE 96. Supply remains a challenge Competition in large metro areas will linger as the areas absorb remnants of the supply surge. PAGE 14. Development in Asia High rates and cheap labor prompt a new joint venture to fi nance and develop hotels in Indochina. PAGE 17.
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