Private equity decides it’s time to cash in on hotels

Miami /
Sep.September 17, 2013 04:00 PM

From the New York site: Private equity firms such as Blackstone Group have deemed the time ripe for initial public offerings of their hotel portfolios. The IPOs come at a time when resurgent demand for hotel rooms is sending stock prices to record highs, and hotel real estate values have almost doubled since 2009’s low, according to research from Green Street Advisors. The surge has led these groups to the conclusion that now’s the time to cash in, Bloomberg News reported.

“The capital markets have been quite strong and we’ve executed our business plans sooner than anticipated.” Keith Gelb, a managing director at Boston-based Rockpoint Group, told Bloomberg News.

Institutional investors made sales totaling $3.44 billion in the first half of 2013, compared to $1.68 billion in the same period last year, according to data from Real Capital Analytics seen by Bloomberg News. Purchases also rose to $3.43 billion, but the year-over-year growth rate was only 21 percent.

Earlier this week, Hilton, which is the world’s largest hotel chain, filed an IPO to raise up to $1.25 billion. New York-based Blackstone, which controls the chain, also filed for an IPO of Extended Stay. [Bloomberg News]Hiten Samtani


Related Articles

arrow_forward_ios
Blackstone’s Stephen Schwarzman and the Hampton Inn hotel at 5701 Madison Avenue (Google Maps, Getty)
Blackstone sells Tamarac Hampton Inn for $18M
Blackstone sells Tamarac Hampton Inn for $18M
ASG's Steve Reardon, DoorLoop's Ori Tamuz and David Bitton (ASG, DoorLoop)
Property management startup DoorLoop raises $20M
Property management startup DoorLoop raises $20M
DLP Capital's Don Wenner (DLP Capital, Getty)
Dream, Live, Pay up? Ex-DLP exec alleges Florida firm owes him millions
Dream, Live, Pay up? Ex-DLP exec alleges Florida firm owes him millions
G6 Hospitality CEO Rob Palleschi and the Motel 6 at 825 East Dania Beach Boulevard (LinkedIn, Google Maps)
Blackstone sells five South Florida budget hotels for $61M
Blackstone sells five South Florida budget hotels for $61M
Link Logistics' Luke Petherbridge with 115.7-acre site at 21001 Northwest 27th Avenue (LinkedIn, Google Maps)
Blackstone’s Link Logistics pays $291M for Calder’s horse racing track
Blackstone’s Link Logistics pays $291M for Calder’s horse racing track
Link Logistics' Luke Petherbridge (Link Logistics, Calder Casino, iStock)
Take two: Blackstone affiliate proposes industrial complex with movie studio at Calder’s horse racing track
Take two: Blackstone affiliate proposes industrial complex with movie studio at Calder’s horse racing track
 Rendering of Nema Miami with Russell Galbut and Bruce Menin (Crescent Heights)
Russell Galbut’s Crescent Heights scores $224M loan for Whole Foods-anchored Edgewater project
Russell Galbut’s Crescent Heights scores $224M loan for Whole Foods-anchored Edgewater project
The Mangrove Bay assisted living facility at 110 Mangrove Bay Way in Jupiter (Senior Lifestyle, iStock)
Blackstone sells waterfront assisted living facility in Jupiter at a loss for $41M
Blackstone sells waterfront assisted living facility in Jupiter at a loss for $41M
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...