Low interest rates fueled big jump in 2013 hotel sales

By Danny King
U.S. hotel acquisition volume jumped 30% last year on a combination of improved lodging results and lower interest rates, STR Analytics said.

About $16.9 billion changed hands in 2013, up from $13 billion the prior year.

Hotel buyers spent an average of $192,000 per room and funded an additional $27,000 per room in improvements.

The average price paid for hotels last year was about 11.4 times annual earnings, up from 10.6 in 2012. Interest rates averaged 4.6%, the lowest on record.

According to STR, U.S. hotels’ revenue per available room rose 5.4% last year. The average daily rate rose 3.9%, while occupancy advanced one percentage point to 62.3%.
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