US Hotel Deals Rise 16% to $7.3 Billion in Q3
US hotel transaction volume reached $7.3 billion in the third quarter, a 16% year-over-year increase, driven by $2.4 billion in luxury hotel deals.
The Daily Lodging Report (DLR) reported that US hotel transaction volume reached $7.3 billion in the third quarter, up 16% from the same period last year.
Luxury hotel deals represented $2.4 billion of the total, with Ryman Hospitality's acquisition of Grande Lakes Orlando for $1.4 billion accounting for more than half of that volume.
In contrast, four of six hotel chain scales declined, with the upscale hotel segment dropping 35% and the economy hotel segment falling 38%, indicating a clear divergence in performance across different segments.
This disparity means investors are focusing on large luxury assets while deals weaken in lower segments, amid a clear slowdown outside the luxury sector.
What do these terms mean?
Transaction Volume: The total value of real estate asset sales and purchases during a specific period, used to measure market activity.
Hotel Chain Scales: Classifications that group hotels according to service level and price, such as economy, upscale, and luxury.
Luxury Hotels: Hotels with high-end services and prices, targeting high-spending guests and investors.
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