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The Real Deal Miami

Hotel companies divest to make a profit as industry rebounds

September 08, 2010 03:00PM

Jim Anhut of InterContinental Hotels Group

As the U.S. hotel industry recovers, some of the country’s largest hotel companies — including Marriott International, Starwood Hotels & Resorts Worldwide, Hilton Hotels Worldwide and Hyatt Hotels — are beginning to divest their properties in an effort to reduce their holdings. With occupancies rising and revenue per room expected to post strong gains, now is the time to restart such divestitures, according to the Wall Street Journal. A reduction in new hotels means stronger cash flows for existing hotels, potentially resulting in rising property values. “It’s maybe the beginning of some opportunities, because there is a fair amount of capital on the sidelines interested in investing in this space,” said Jim Anhut, chief development officer in the Americas division of InterContinental Hotels Group, owner of brands including Holiday Inn and InterContinental. “We’re a cyclical business, and people are seeing the bottom of the cycle.” [WSJ]