Deals
Hotel Slump Lures Buyout Firms After Shares Slide From Early '15
- Bloomberg hotel REIT index down a third from January 2015 high
- U.S. hotel deal pace, down 76% year to date, seen picking up
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Buyout firms expect bargains may emerge in hotel investments following the slump in U.S. lodging stocks, suggesting a potential pickup in deals after a slow start this year.
“Market volatility creates opportunities for longer-term, value-oriented investors like ourselves,” said Tyler Henritze, co-head of U.S. real estate acquisitions for Blackstone Group LP, which raised a record $15.8 billion property fund last year. The private equity firm in December bought Strategic Hotels & Resorts Worldwide Inc., owner of properties including the J.W. Marriott Essex House in New York, Westin St. Francis in San Francisco and Four Seasons Resort in Jackson Hole, Wyoming.