According to a report issued by Hospitality Advisors, a hotel consulting firm, there were a total of $1.97 billion of hotel real estate sales in 2013. Furthermore, 2014 is off to a great start with an estimated $500 million in hotel transactions closing within the first two months. President of Hospitality Advisors, Joseph Toy, commented, "There's still an unbelievable amount of activity going on. We've also seen a shift in players with a lot of new investment coming from private equity funds and a lot of new brands coming into Hawaii. Ultimately, they'll refresh the properties that they've purchased and the destination."
Mark Bratton, the international vice president for Colliers International, a commercial real estate company, stated that most of the buyers are from the New York financial market, but there are also buyers from Hawaii, Canada, Japan, China, Singapore and Australia. Low interest rates and low inventory have helped to drive up the prices, but the main motivating factor have been the strong hotel performances, the diverse visitor base and growing airline. Bratton commented, "Waikiki and Oahu/Honolulu economy is what everyone has been chasing and believes will continue to increase at a healthy pace."
Source: Honolulu Star Advertiser, 3-10-2014, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Principal Broker, REALTOR®
Global Executive Realty, LLC
www.myhawaiihomesearch.com
www.myhawaiicondo.com
www.myhawaiidreamhome.com
