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NOW Is the Best Time to Buy or Sell A Hotel in Many Years
By feature writer Jim Butler and the Global Hospitality Group®
The number of hotel transactions is up by more than 50% for the first 6 months of 2013 over the comparable period last year, and is expected to top $18 billion for 2013, according to Jones Lang LaSalle. And HVS reports that the sales transaction volume of hotels is now intersecting its 22-year moving average, and predicts that hotel values will continue to grow at an average of 12% for each of the next 3 years (substantially less than the past couple of years, but still a nice increase in value).
These numbers are only the tip of the economic iceberg that hotel owners and investors analyze in depth, to help make decisions as to the right time to buy and sell hotels. As they delve deeper, they are finding a confluence of economic and market conditions that spell "opportunity."
But how can it be a great time to buy and sell hotels? Why does the same environment indicate such different courses of investment strategy?
We will look at some of the factors that create this fertile ground, while keeping in mind that every owner and investor has a specific circumstance, investment horizon, capital situation and objective, and every hotel property has a specific condition, value, and potential for additional appreciation.
Why NOW is a good time to SELL a hotel
All of these factors indicate to many hotel owners that NOW is a good time to SELL a hotel.
Why NOW is a good time to BUY a hotel
A good time to buy or sell
Depending on many factors unique to each owner or buyer, the market, the hotel property location, condition and potential, 2013 and 2014 will be a great time to buy or sell a hotel.
Don't be daunted by the prospect of challenges! The industry will always face challenges in driving increases in the top line revenues while controlling ever-increasing costs. Experienced management and ownership will find it is the same song, just a different verse. Experienced professionals can provide analysis and guidance to both buyers and sellers.
We believe that 2013 will be a turning point for hotel transactions as well as for new hotel development. It's a great time to be in the hospitality industry!
How to Buy a Hotel Handbook - a Global Hospitality Group® Resource
We invite you to register and download your free copy of our How to Buy a Hotel Handbook at the Resource Center on HotelLawyer.com. Published in March 2013, the How to Buy a Hotel Handbook is based on the experience our Global Hospitality Group® members have gained from more than $60 billion of hotel transactions involving more than 1,300 hotels all over the world. The Handbook provides a detailed overview of the hotel acquisition process, a thorough due diligence checklist, and informative articles that address some of the most important questions that arise when buying or selling a hotel.
Source: Hotel Law
This is Jim Butler, author of www.HotelLawBlog.com and hotel lawyer, signing off. We've done more than $60 billion of hotel transactions and have developed innovative solutions to help investors be successful in bidding for hotel acquisitions, and helping investors and lenders to unlock value from troubled hotel transactions. Who's your hotel lawyer?
Our Perspective. We represent hotel owners, developers, investors and lenders. We have helped our clients find business and legal solutions for more than $60 billion of hotel transactions, involving more than 1,300 properties all over the world. For more information, please contact Jim Butler at email@example.com or 310.201.3526.
Jim Butler is a founding partner of JMBM, and Chairman of its Global Hospitality Group® and Chinese Investment GroupTM. Jim is one of the top hospitality attorneys in the world. GOOGLE "hotel lawyer" and you will see why.
Jim and his team are more than "just" great hotel lawyers. They are also hospitality consultants and business advisors. They are deal makers. They can help find the right operator or capital provider. They know who to call and how to reach them.
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