WASHINGTON, DC-Enough hotel trades have now occurred in the DCarea that brokers feel comfortable talking about pricing--on therecord no less. With the latest transaction in theworks--Pebblebrook Hotel Trust is acquiring DC’s Hotel Monaco for$74 million, or $400,000 per key--the bar has been set, says MarcMagazine, who recently opened the doors on McLean, VA-basedHumboldt Hospitality Advisors with former CB Richard Elliscolleagues Tom Baker and Dave Durbin. “The market has reached aplatform of $400,000 per key for full-service hotels and I believeprices will start climbing from there,” he tellsGlobeSt.com.

There have been a number of trades in recent months--and moreare expected to come to market within the next 60 to 90 days,according to Magazine. One new property on the market that is beingwatched closely is the Madison Hotel in the District. “My guess isthat they will try to sell that for over $100 million,” Magazinesays. “The buyers, though, will have to put in substantialrenovations to change the brand and the concept.”

The reason for the activity is not difficult to guess: productshave started to move after the Sofitel sale earlier this year--thefirst trade in close to two years. That, coupled with the pent-upinvestment dollars sitting on the sideline, has opened the door tothese transactions.

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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.