PDF F Hotel Values & CAP Rates

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Hotel Values & CAP Rates

Meet The Money? 2016

Presented by:

Suzanne Mellen, MAI, CRE, FRICS, ISHC

Senior Managing Director - Practice Leader Hotel and Casino Consulting & Valuation (415) 268-0351 smellen@

May 6, 2015 ? Sheraton Gateway Hotel Los Angeles

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Historical Sales (Total Assets >$2.5M)

$45

+30%

$200,000

$185,222

$40

$180,000

$35

$160,000 $30

$25

$140,000

$138,361

$20

$120,000

$15 $100,000

$10

$5

$80,000

$0

$60,000

$ in Billions Price Per Key

Sales Volume ($ in Billions)

Price Per Key

Source: Real Capital Analytics (RCA)

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Historical Sales (Total Assets >$2.5M)

$ in Billions Price Per Key

$45

$200,000

$185,222

$40

$180,000

$35

$30

-25%

$160,000

$25

$140,000

$138,361

$20

$120,000

-52%

$15 $100,000

$10

$5

$80,000

$0

$60,000

Sales Volume ($ in Billions)

Price Per Key

Source: Real Capital Analytics (RCA)

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Major Hotel Sales Transactions

Number of Major Sales

1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Avg. Price Per Room

300

$250,000

250

$200,000

200 $150,000

150

$100,000 100

50

$50,000

0

$0

Number of Hotels

Average Price per Room

Source: HVS

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Hotel Sales Volume Trends

$2.5-10M $10M+ 50.0

45.0 33.7

40.0

35.0

27.4 27.8

30.0 22.7

25.0

20.0

26.7 21.4

17.5 14.2

15.0

8.6

9.3

10.0

5.0

2.0

0.0 5.0 5.6 4.8 3.2 1.2 1.6 2.6 3.5 4.7 5.2 6.5

10.8 4.9

1.6 1.1

$ in Billion

Source: Real Capital Analytics (RCA)

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Hotel Sales Volume Trends

50.0

$2.5-10M $10M+

45.0 33.7

40.0

35.0

27.4 27.8

30.0 22.7

25.0

20.0

26.7 21.4

17.5 14.2

15.0

8.6

9.3

10.0

5.0

2.0

0.0 5.0 5.6 4.8 3.2 1.2 1.6 2.6 3.5 4.7 5.2 6.5

-55%

-32%

10.8 4.9

1.6 1.1

$ in Billion

Source: Real Capital Analytics (RCA)

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Comparison of # Properties Sold

2,500

$2.5-10M $10M+

2,000 1,500

632 725 750

1,000

286

757 750 489 378 450

241

500

79

949 1,059 926 622 251 329 532 715 945 1,018 1,284 0

203 131

-35.5%

314 218 -30.6%

Source: Real Capital Analytics (RCA)

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Portfolio Sales Drove Overall Sales Volume

Notable Portfolio Sales Since 2015

December 2015

Properties: 53 (Extended Stay) Buyer: DW Crossland Owner LLC Seller: ESH Hospitality, Inc. Price: $285,000,000 Price/Room: $57,046

Buyout December 2015

Properties: 16 (Full Service) Buyer: Blackstone Real Estate Partners VIII L.P. Seller: Strategic Hotels & Resorts, Inc. Price: $6,000,000,000 Price/Room: $792,498

May 2015

Properties: 10 Waterpark Lodges Buyer: Centerbridge Seller: Great Wolf Lodge Price: $1,350,000,000 Price/Room: $377,200

Source: Real Capital Analytics (RCA)

Merger January 2015

183 (Select Service) Buyer: Starwood Capital Group Seller: TMI Hospitality, Inc. Price: $1,100,000,000 Price/Room: $81,857

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