The market is more conservative compared to the European market. There are active buyers, but the market is a little slow. According to HVS, portfolio sales accounted for more than half of the major transactions this year, compared with last year when portfolio transactions were not as prominent. The portfolios primarily consisted of limited-service properties. Most full-service properties changed hands in individual transactions.
Portfolios are back in style.
Last year, most transactions were individual assets, and there weren't many portfolios to sell. We will continue to see limited-service hotels being sold in portfolios. Small companies are buying newer products or products that don't fit larger companies' long-term plans. According to HVS, the sales of the Desert Inn in Las Vegas, the Westin St. Francis in San Francisco and the Marriott Chicago Downtown were the three highest for overall price. The sales of the Four Seasons Biltmore in Santa Barbara, Calif., and the Sutton in New York had the two highest prices per unit through midyear.