Hotel trades have been a rare breed in this market. Thistransactionfollows a $9-million trade of aboutique hotel earlierthis month. However these sales hardlymake a trend--and certainly not one in which the hotel space canconnect dots to determine pricing andvaluations, David P. Fuller,principal with HVS Consulting, tellsGlobeSt.com.
These transactions "are not going to open any floodgates interms ofhotel transactions in the DC area. Right now the DCarea--particularly the District--is a sellers' market," Fullerssays, adding that there is plenty of interest in acquiring DC areahotels--he has fielded a few offers on behalf of clients recently,from overseas investors.
Hotels in this market are performing well and owners tend tobelong-term buy and hold investors, he explains. "So why wouldanyonewant to sell right now, unless they have to."The next sales,Fuller predicts, will likely be because the owners didindeed haveto sell. "I think we will see some deals come to marketwhere theowner refinanced in 2006 or 2007."
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Erika Morphy
Erika Morphy has been writing about commercial real estate at GlobeSt.com for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.
