Private equity firms had been accelerating sales of hotels. This was to take advantage of a recovery in the US lodging demand and stock prices close to record highs. Transactions for hotel properties had increased 47% to USD14.1 billion this year in the US. This was according to a data from Real Capital Analytics Inc. The data also showed that sales by institutional investors more than doubled in the first half of the year. This was due to the growth of revenue per available room decelerated.
Blackstone Group LP decided now is the right time to sell its shares, according to a Bloomberg report. The move came after the biggest buyout firm prepared for an initial public offering of the Hilton Worldwide Holdings Inc. and Extended Stay America Inc. chains.
The recovery in travel after the last recession had led increased hotel real estate values to reach more than double since 2009's low. This was based on an index from research firm Green Street Advisors Inc. Hotel firms including Marriott International Inc. and Starwood Hotels & Resorts Worldwide Inc. rose to their highest prices from 2007. This was after Blackstone bought Hilton Hotels Corp. for USD26 billion at the tail end of the largest buyout boom recorded in history.
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