According to a report released by Hospitality Advisors LLC, $1.59 billion of commercial hotel purchases have occurred during the first half of 2013. President and CEO for Hospitality Advisors, Joe Toy, noted that this amount of commercial interest in buying Hawaii hotels has not been seen in Hawaii since the Japanese bubble economy several decades ago. The report notes that most of the buyers are actually large New York financial firms, but there are also commercial buyers from Japan, China and Korea. Toy stated, "We began to see hotels start to trade again in 2012, but it really accelerated in 2013. We finished June essentially at the same level as our best year ever. Knowing what's on the table and what's in the pipeline, we'll have a phenomenal year that far exceeds the 2004 level."
Colliers International's Director of Consulting and Research, Mike Hamasu, added that hotel sales may account for as much as 40 to 50 percent of the state's commercial sales volume for 2013. STR Global's senior vice president of global development, Jan Freitag, added that Hawaii's strong hotel performance combined with low interest rates are driving this hotel buying frenzy. Freitag stated, "Roughly 8.5 out of 10 rooms every night for the first 180 days were occupied on Oahu. No other market even comes close to that performance."
Source: Honolulu Star Advertiser, 7-21-2013, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Broker-in-Charge, REALTOR®
Global Executive Realty, LLC
www.myhawaiihomesearch.com
www.myhawaiicondo.com
www.myhawaiidreamhome.com
Posted by Jeff Uyemura-Reyes, Broker-in-Charge, REALTOR®
Global Executive Realty, LLC
www.myhawaiihomesearch.com
www.myhawaiicondo.com
www.myhawaiidreamhome.com
