Next week is ALIS Conference in Los Angeles, a best-in-class industry conference for hospitality investment professionals. We have had a chance to attend a few times and have really enjoyed it. Unfortunately, we won’t be participating this year. Instead, we decided to put together a 2014 year-in-review update for the U.S. hotel industry. We thought it would be a good material to prepare you for the conference or give you some topics to discuss.
We got busy with new features over the past few months, as you can see from our stream of updates here and here and here, that we got really delayed on our first quarter review. Well, there were no earth-shattering news: the market’s good times continue unabated. Which is nice, isn’t it? We certainly like it. Let’s take a look at the activity in the four sectors we cover.
When we set about to write the 2013 review and compile the data – as any good writer – we reviewed our 2012 post. And we realized we were probably going to finish our 2013 piece with the same wish: “to bring our subscribers a more visual and immediate way to better understand the trends that are occurring in OpenComps’ dataset.” And we didn’t want to make the same promise twice. So we stopped writing reviews and started writing code!
Today – together with our 2013 review – we are proud to announce the new Trends & Charts section (see here for hotel, office, retail or multifamily). Currently, you can find it in our Browse By section (dropdown) together with the other data aggregation screens. And we are making it open for every one, reserving for our PRO Subscribers the advanced features such as filtering, longer time period (20 years) and advanced chart tools such as data zoom and save to PNG. This charting tool combined with its extensive search filter can produce really outstanding data insights. We hope you will consider unlocking it’s full potential with a PRO subscription.
And now onto our 2013 review. The chart that follows gives you a quick overview.
While we were busy with our new re-design over the summer, the transactions market didn’t let up either during the “quiet” months of summer which are supposed to be filled with family vacations and BBQs. With the third quarter of 2013, here is an update on our quarterly and year-to-date statistics.
The Q3 one-word summary is: HOT. As in summer hot, but really as a hot transactions market that we are seeing at the moment. Can it get even hotter? We think so. We think we are in a cyclical upturn which hopefully has more legs to run.
With the first quarter of 2013 behind us, we thought we should take a look at the volume and trend data. After observing a decrease in volume and cumulative value for hotel transactions at the end of 2012 compared to 2011, the trend in 2013 has reversed significantly and for the better. First quarter of 2013 saw 150 transaction worldwide and 113 in the U.S. vs. only 54 and 52, respectively, in the first quarter of 2012. That is a jump of 178% worldwide and 117% in the U.S. (Naturally, our tracking of non-U.S. transaction is still very sparse, so the real observable trend is in the U.S.).
We also decided to provide you with a summary of the distributions by property type and location type for the first quarter. Interestingly, investors are almost equally focused between Urban and Suburban properties with the focus on Upscale and Upper Upscale properties. (We recently updated our property types classifications to align ourselves with the latest STR classifications; clean up, though, is still in process).
Here at OpenComps we hope that everyone had good holidays. Before we plunge into a hopefully busy 2013, we wanted to take a general look at what happened in OpenComps’ dataset in 2012 as of today January 2, 2013: