Auction.com closed 49 commercial assets for a combined value of more than $121 million in September. Driven by a steady increase in travel, hotel properties comprised $35 million of the month’s closings.
“With the return of tourism and business travel, the hospitality industry is gaining strength and hotel revenues are increasing,” said Rick Sharga, executive vice president of Auction.com. “CRE investors interested in the hospitality segment are using our online platform as a way to quickly and effectively buy and sell both traditional and distressed properties.”
The U.S. Department of Commerce reports that spending on travel and tourism increased by 9.1 percent during the second quarter, contributing to the increasing popularity of select service hotels as investments for large REITs and private equity firms. Recent reports indicate that as the lodging industry segment diversifies, transaction volume and competition for these types of assets have also increased.
Auction.com’s recent success in auctioning the Fairfield Inn Orangeburg, a 64-key hotel located in Orangeburg, South Carolina, highlights this market trend. The asset was auctioned on July 17, and closed on Sept. 15, selling for 130 percent of the seller’s reserve price.
Source: Press Release