Hotel Industry Trends - Development

Total hotel property transactions in 2011 amounted to US$14.0 billion, compared to $8.6 billion in 2010, according to data from STR Analytics. This is a 62.8-percent increase over 2010.

STR Global issued it's 2011 Global Construction Pipeline Report update for December:

Healthy operating fundamentals and an abundance of equity capital will support a buoyant market for hotel transactions

Hunter notes that as the market continues to firm up, they expect to see a larger number of conventional hotels coming to market.

The U.S. hotel industry during 2011 opened 373 new properties with 38,409 rooms, which resulted in a 0.5-percent increase in existing room supply, according to data from STR/McGraw Hill Construction Dodge Pipeline Report.

HVS’ 2011 U.S. Hotel Valuation Index (HVI) Shows Significant Increases in Transaction Dollar Value Over 2010

In 2011, 34 new properties comprising 3,377 rooms opened in Canada, according to data from the STR/McGraw Hill Construction Dodge Pipeline Report. This represents a 1.0-percent increase in new supply over last year.

Despite the continuing economic uncertainty, Jones Lang LaSalle Hotels forecasts that global hotel transaction volume will hold steady in 2012 to again reach upwards of $30 billion in deals, according to initial results from the firm’s Hotel Investment Outlook 2012 report.

As 2011 comes to a close, commercial real estate investors continue to seek buying opportunities with the office market gaining increasing interest, despite a mixed bag of improving commercial real estate fundamentals, according to the fourth quarter 2011 findings of the PwC Real Estate Investor Survey, released today.

STR Global issued it's 2011 Global Construction Pipeline Report update for November: