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What’s Driving Strong Deal Pace of U.S. Hotels?

U.S. hotel transaction volumes reached more than $11.9 billion in Q1 2018, a 93% increase over last year, according to research by JLL. Deal pace has been driven by South Florida and West Coast markets, including Hawaii, resort properties, and portfolios of prime full service hotels.

Transactional activity has been underpinned by the acceleration in performance growth. JLL reports cap rates sharpened further due to the high profile of assets transacted and ongoing strong investor sentiment, shaping the story for hotel deals during the quarter.

JLL’s Arthur Adler notes that since March, “Investor sentiment has markedly improved based on the widely-held belief that demand will outstrip supply for the foreseeable future, resulting in stronger pricing power and solid profit improvement.”

In 2017, JLL reported transaction volume was down about 15%, and the pickup in year-over-year activity is already evident in 2018. The industry is flooded with available capital for acquisitions. Yet, JLL points out two things are holding deal volume down: the lack of property coming to market, and the option to finance. That’s leading many owners to opt to refinance instead of sell.

For comments, questions or concerns, please contact Dennis Kaiser

*Pictured Grand Wailea resort on Maui

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About Dennis Kaiser

Dennis Kaiser is Vice President of Public Relations and Communications for Connect Creative. Dennis is a communications leader with more than 40 years of experience including as a journalist and in corporate and agency marketing communications roles. He is responsible for Connect Creative’s agency client services and is involved in a range of initiatives ranging from public relations and content strategy, communications and message development, copywriting, media relations, social media and content marketing services. Prior to joining Connect Media in 2015, his most recent corporate communications roles involved leading a regional public relations effort across Southern California for CBRE, playing a key marketing role on JLL’s national retail team, and directing the global public relations effort at ValleyCrest (BrightView), the nation’s largest commercial landscape services company. He has worked on marketing communications assignments for such CRE companies as Blackstone/Equity Office, Carlyle, Caruso, Disney Resorts, GE Capital, Irvine Company, Hines, Howard Hughes Corp., Jeffries, Lennar, MGM, Marcus & Millichap, Prologis, Raleigh Studios, Simon, Starwood, Trammell Crow Company, Transamerica, UBS and Wynn Resorts. Dennis has also worked on communications and launch strategies for a number of consumer electronic, media and tech brands including SlingMedia, Channel Master, Deluxe Media Entertainment, BeIn Sports, EchoStar and Sprint. Dennis’s agency background included firms such as Off Madison Ave., Idea Hall and Macy + Associates. He has earned an outstanding reputation with organization leaders as a trusted advisor, strategic program implementer, consensus builder and exceptional collaborator. Dennis has developed and managed national communications programs for Fortune 500 companies to start-ups, both public and private. He’s successfully worked with journalists across the globe representing clients involved in major-breaking news stories, product launches, media tours, and company news announcements. Dennis has been involved in a host of charitable and community organizations including the American Cancer Society, Easter Seals, Boy Scouts, Chrysalis Foundation, Freedom For Life, HOLA, L.A.’s BEST, Reach Out and Read, Super Bowl Host Committee, and the Thunderbirds Charities.

  • ◦Sale/Acquisition
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