The 2001 Hotel Transactions Survey Overview

Written By:  Antonia G. Viens

HVS International, the leading global hospitality consulting and appraisal firm, presents The 2001 Hotel Transactions Survey, which details the major hotel transactions for the year 2001.  HVS defines a major transaction as �any hotel that transferred at $10 million or more, or any individual portfolio asset that, if sold individually, would have generated a sale of $10 million or greater.�  Included in the survey is a list of all 105 major transactions for 2001, along with each transaction�s property name, city, state, date of sale, number of rooms, sale price, price per room, buyer, and seller.  The sales are listed in descending order, beginning with the Fairmont Kea Lani in Wailea, Hawaii, which achieved the highest sale price in 2001 ($250 million), and ending with the Travelodge in Orlando, Florida, which sold for $10 million.

Authored by Antonia G. Viens, MAI, Director of Data Collection and Research for HVS International, with contributions from Stephen Rushmore, MAI, President and Founder of HVS; Suzanne Mellen, Managing Director of HVS San Francisco; and Mark D. Capasso of HVS San Francisco, The Survey includes a discussion of the history of the hotel industry in recent years.  The authors provide data regarding industry trends over the past 11 years, detailing the number of sales and average per-room sales prices for each year during that period.  Additionally, the authors provide insight as to the causes and effects of these cycles.

New to this year�s Hotel Transactions Survey is a discussion of casino and casino hotel transactions, compiled by Mark D. Capasso, HVS International�s gaming industry consultant.  This component examines the valuation methodology of gaming investments, and articulates the similarities and differences between traditional hospitality facilities and casino hotels.  Additionally, this portion of The Survey discusses why seemingly similar casinos and casino hotels sell for widely disparate prices.  A total of 15 major gaming transactions occurred in 2001, all of which are included.

Furthermore, The 2001 Hotel Transactions Survey discusses the effects of the September 11^th terrorist attacks on the hotel industry, separating the transactions that occurred before and after this date.  These figures are then compared to the figures for the same periods of both 1999 and 2000.  The study concluded that in 2001, despite a significant decline in the number of sales during the last four months the year, as well as a considerable drop in overall sales from the previous two years, average per-room prices were near the 11-year high.

Another new feature included in this year�s Survey is an overview of sales by market positions (luxury, upscale, and mid-scale) and the capitalization rates generated within in each market position sector.  Additionally, this year�s Survey offers the standard overview of sales by region. In 2001, the Pacific region (specifically California and Hawaii) once again realized the highest-priced properties in each market category.

HVS will now be producing a quarterly version of The Survey.  The upcoming Quarterly will feature a discussion of hotel sales by brand and location, as well as a look at individual hotels, purchase prices, industry trends, related brand capitalization rates, and operating ratios.  The following edition will discuss current and historical values in major hotel markets such as New York, San Francisco, Las Angeles, Boston, Miami, Orlando, Chicago, and San Antonio.  As a special bonus, a purchase of The 2001 Hotel Transactions Survey will also include the HVS Hotel Transactions Quarterly for 2002.

The subscription fee for both The 2001 Hotel Transactions Survey and the 2002 HVS Quarterly is $250. To order, contact Joan Raffetto at (516) 248-8828, ext. 231.  Additionally, the HVS Department of Data Collection & Research can complete customized searches.  For details, contact Antonia G. Viens at (860) 836-3896.

Please note that HVS International is merely a conduit for the data as shown and assumes no responsibility or liability of the accuracy, usability, confidentiality, or other matters related to this survey.  Information herein is believed to be reliable and has been obtained from sources believed to be reliable.  Efforts have been made to verify information that has been presented, but its accuracy and completeness cannot be guaranteed. Opinions, estimates and projections constitute our judgment and are subject to change without notice.

Antonia G. Viens
HVS International
372 Willis Avenue
Mineola, NY  11501
860-836-3896
516-742-3059 Fax
 

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