Overview of Hotel Developments and Transactions | Q3 2017

Posted By: | Category: HospitalityResearch

HOTEL DEVELOPMENTS

From Q1 to the end of Q3 2017, MGAC recorded 100+ hotel projects in the pipeline (proposed/planned/under construction), among which approximately 60% are ground-up developments and 40% are renovations. These projects represent a total of more than 24,000 hotel rooms.

  • In Q3, California, Florida, and North Carolina represented the lion’s share of all the ground-up hotel developments in the pipeline.
  • Upscale hotel chains were the most popular choice by owners for both new developments and renovations in Q3.

HOTEL TRANSACTIONS

In Q3 2017, MGAC tracked 50+ single-asset hotel transactions. These transactions totaled over $3.5 billion, representing approximately 16,000 hotel rooms with an average price per key of $240,000.

  • Some of the largest deals in terms of overall transaction amount include the MGM National Harbor Casino ($1.2 billion) in Maryland, the uncompleted Fontainebleau Resort in Las Vegas ($600 million), and the Oceans Edge Key West Hotel & Marina ($175 million).
  • With 13% of major Q3 hotel transactions located within its borders, Florida was the most popular market for hotel investment, followed by California and Nevada with shares of 11% and 7%, respectively.

Explore the following interactive maps for all the hotel developments and transactions that took place in Q3 2017.


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Disclaimer: The information contained in this analysis was obtained from sources deemed to be reliable. Every effort was made to obtain accurate and complete information; however, no representation, warranty or guarantee, express or implied, may be made as to the accuracy or reliability of the information contained herein. This should not be considered as investment advice.

MGAC Research Group collects and disseminates information on the construction market, including in-depth reporting on factors driving overall project costs.
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