The hotel market across the country has great lift with average daily rates on the rise. Colliers International Hotels predicts increases in average daily rates through Hawaii for each of the next four years. It seems that the worst of the recession for the hotel market is behind us and there is a bright future for increasing that income at hotels in Hawaii.
There is an enormous amount of capital sitting on the sidelines ready to invest into this hotel marketplace. Many of the hedge funds and private equity funds are looking for deals throughout Hawaii and across the country. There was little activity in hotel sales in Hawaii in 2010, but with the forecast turning up and values climbing back up, there are sure to be more transactions in 2011.
Hotels lead the REIT market investment returns across the country. Posting almost a 24% increase year over year, the hotel REITs have been the darling of the public investment market for commercial real estate this past year. While most commercial real estate performed better than the S&P 500, hotel values went up dramatically after a large 3-year downturn.
Below is a link to an interesting and complete article on the activity on hotel investments across the country.