In yet another sign of revitalization of the commercial market, hotel and resort investments appear to be making a comeback.
This sector was especially hard hit during the recession due to a significant reduction in family vacation spending as well as reigning-in of corporate convention bookings at hotels across the country. The fact that hotel investments are again on the rise points to growth in both these areas.
In Florida, Met Life recently added to their $12-billion real estate portfolio by purchasing a majority stake in the Swan and Dolphin resorts located on the Walt Disney World property. According to the Wall Street Journal, the deal comes as investors are showing more interest in resort hotels
nationwide. "Last year, investors spent $4.5 billion to acquire resort
hotels, up 140% from 2012. Resorts in general, and Florida resorts, are viewed as highly
attractive... The market has come around to the point that most resort markets are
Elsewhere in the United States, the Standard Hotel in Manhattan is set to fetch a post-financial crisis record price. The five-year-old hotel is being considered by numerous investors including a group led by Steven Kantor, with bids said to be as high as $400 million - some $160 million more than the hotel's construction price. Read the full article here.