With $4.48 billion in property deals since Jan. 1, 2013, hotel REITs have been active acquirers. But the number of hotels acquired and deal value have slowed year-to-date in 2014, down 25% and 11.3%, respectively.
With the first half of 2014 nearing completion, the acquisition activity in the publicly traded U.S. hotel REIT space included 24 hotel acquisitions year-to-date as of June 13, aggregating $1.26 billion, compared to 32 acquisitions completed over the same period in 2013, totaling $1.42 billion, representing a 25.0% decrease in the number of hotels acquired and an 11.3% decrease in total deal value year over year.
Over the roughly 18-month time period between Jan. 1, 2013, and June 13, 2014, a total of 92 hotel properties worth a combined $4.48 billion were acquired by publicly traded U.S. hotel REITs.
RLJ Lodging Trust acquired 18 hotels worth a combined $630.2 million between Jan. 1, 2013, and June 13, 2014, making it the largest acquirer in terms of aggregate purchase price among publicly traded hotel REITs. Much of that activity has happened in 2014: RLJ Lodging had completed 12 acquisitions year-to-date as of June 13, worth a total $433 million, compared to two acquisitions aggregating $63.7 million in the year-ago period.
RLJ Lodging said in a Feb. 6 news release that it is eyeing West Coast expansion after it agreed to buy a $313 million, 10-hotel portfolio from Hyatt Hotels Corp. affiliates, with properties branded under the Hyatt, Hyatt Place and Hyatt House flags. The deal was completed March 13. Additionally, the company intends to invest an additional $25 million in capital expenditures across the Hyatt portfolio.
“We expect that our focus on asset management, accretive acquisitions, and well-timed asset repositionings will continue to drive further growth as the year progresses,” said RLJ Lodging CEO Tom Baltimore Jr. during the company’s first-quarter earnings call. “We have seen positive trends across the vast majority of our markets.”
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