The volume of U.S. hotel transactions reached $8 billion so far in 2013, a 50 percent increase from the same period last year, according to new data from Jones Lang LaSalle.
Single asset transactions represent $4.3 billion while portfolio sales make up the remaining $3.7 billion. Out of the total transaction volume, resort investments represented 25 percent of sales, almost double the sector activity in 2012.
"Hotel transactions thus far in 2013 have outpaced levels recorded during the same prior-year period, driven partly by two mega portfolio sales in excess of $1 billion each," said Arthur Adler, Americas chief executive of JLL's Hotels and Hospitality Group during the NYU International Hospitality Industry Investment Conference.
"We anticipate that by year end, U.S. transaction volume will reach $17.5 billion, marking a 10 percent increase over 2012."
While New York, San Diego, Washington D.C., Miami and San Francisco kept their positions as "most active" for hotel transactions, previously unranked markets round out the list for the top 10 U.S. markets for hotel investments in 2013, the firm reports.
Atlanta debuts on the list at number two with a deal volume of $400 million, driven by foreign capital. Number three New Orleans had a volume of $345 million with REITs accounting for 80 percent of the transactions.
With a year-to-date transaction total of $155 million in 2013, Houston is expected to keep up the double-digit pace it reported in 2012.
Private equity funds represented 35 percent of acquisitions, funding most of the purchases in excess of $100 million, JLL reports.
Public REITs and sovereign wealth funds made up 21 percent of transactions, dominating the $60 million to $100 million purchases in gateway and secondary markets.