We re starting to see some activity in the market again, he said during a presentation at the La Qui

Hotel sales slowed nearly to a standstill in 2009 when only two trades took place in the market. Activity, though, has picked up during the past three years, with 12 transactions in 2010; 11 transactions in 2011; and 13 sales a year ago, Hans Detlefsen, managing director of HVS s Chicago office, said during one of the company s U.S. Hotel Market Connections 2013 events last week.
We re starting san francisco dinner cruises to see some activity in the market again, he said during a presentation at the La Quinta Inn Suites Chicago Downtown. Hotel sale prices during 2012 averaged $118,000 per key, 28.3% higher than the national average of $92,000.
Recent deals include Chesapeake Lodging san francisco dinner cruises Trust s acquisition of the 520-room W Chicago Lakeshore in August san francisco dinner cruises 2012 for $126 million, or $242,000 per key. Detlefsen also noted the sale of the 357-room Hilton Garden Inn Magnificent san francisco dinner cruises Mile in July 2012 to Sunstone Hotel Investors for $91.8 million, or $257,000 per key.
That both of the properties was acquired by a real estate investment trust is not a surprise. Detlefsen said REITs have led the hotel buying in the Windy City, accounting for nearly 75% of transaction volume, or $434 million, in 2012.
Detlefsen mentioned the $110-million renovation of the Hyatt Regency McCormick Place, which is adding 460 rooms for a total 1,260 rooms. He said there s also a proposal to build a 1,000-room second hotel adjacent to McCormick Place, which Detlefsen described as one of the most successful convention centers, despite its location and surroundings.
Room supply in Chicago is expected to creep higher through 2015, from 110,000 rooms this year to 113,000 rooms in 2015. Demand is keeping pace for now, Detlefsen said, but that might change if all the proposed projects come to fruition.
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