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Transaction activity soars in 2005.

Like the ski jumpers at the winter Olympics, hotel real estate transaction activity soared in 2005 well above 2004 levels. Based solely on the transactions that have been recorded in the database of PKF Hospitality Research (PKF-HR) as of February 2006, the number of hotels bought and sold in 2005 was 13 percent greater than the number transacted in 2004. When all the 2005 deals have finally been documented, the growth rate is expected to be even greater. This increase in transaction activity is yet another indicator of the confidence buyers have in the hotel market.

The boom in real estate sales is not a sell off of unwanted assets. The average price-per-room paid for ...

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