GlobeSt.com: How has deal volume in online auctioning through the hotel sector changed?

Falor: The volume of hotel sales via online auctions has increased dramatically over the past few years. We've seen acceptance of the online auction platform as a tool by just about every category of hotels buyers and sellers and from all levels—the institutional level, the hotel-company level, and the individual entrepreneurial level. We've also seen growing acceptance from brokers who realize that we're not here to replace them, but to enhance their success. Hotel brokers continually work with us to give confidence to their clients that no stone was left unturned and that their property was exposed to the broadest possible audience. The numbers speak for themself: last year, we did a breakout 76 transactions totaling more than $257 million, and this year we will smash that number. We're already over $289 million in sales and have another 34 properties in escrow that will close in the next 45 days, representing nearly $140 million. That's a pretty significant number.

GlobeSt.com: What are the factors causing this acceleration?

Falor: There are three factors: the visibility of Auction.com and continued acceptance of our platform; the availability of financing in the market; and demand dynamics within the hotel industry. The first we discussed above, but as the company has established a track record for successful hotel sales, more and more property owners and brokers are wanting to utilize our platform. For the second, the ability to access financing is great right now. There are many financial institutions, as well as conduit lenders, competing for business, so money flow is very good, particularly into the hotel space. Thirdly, if you look at the demand dynamics within the hotel industry, they're healthy. For at least the next 18 to 24 months, they will continue to be healthy. Supply is not a huge risk, although it's increasing. Having a predictable yield for hotel investors is important and gives them a sense of confidence.

GlobeSt.com: How do you anticipate hotel deal volume to change via auctioning in the future?

Falor: We believe that volumes will continue to increase as we listen to our customers and our process evolves to meet their needs. For example, we've introduced a new custom auction offering, an indicative-bids process with which a lot of public companies are comfortable. We did our first three custom auction events for multifamily and office properties that were incredibly successful. One of these was the largest online transaction in the history of commercial real estate - more than $96 million. We will continue to feed off that momentum through the introduction of new products which we believe will continue to make owners feel more and more comfortable. Also important is the continued trend of people cycling assets—you consistently see the cycling of assets, and it's very reflective in our numbers. We have 49 hotel properties going to auction in the next three events—that's significant volume.

GlobeSt.com: What else should our readers know about hotel deal volume?

Falor: Overall deal volume this year is similar to last year's, and we believe that next year will be about the same. So most of the growth we're seeing at Auction.com represents a higher market share for online sales rather than being the result of growth in the total number of hotels sold. So next year's deal volume will be decent, but could be challenged by a number of factors, like rising interest rates and unpredictable events that affect our economy and travelpatterns domestically and abroad. There will be fewer sales in major cities with international appeal, due to rising prices and the strength of the U.S. Dollar. It's a cyclical market, and while we're not talking about any kind of doom-and-gloom scenario, we may be starting to mature into the peak of this cycle.