MCLEAN, VA— Molinaro Koger reportedly wrapped up another banner brokerage year in 2003 with the firm closing 82 hotel dispositions— valued at a total of $835 million— over the course of the past 12 months. With transactions handled by the firm ranging from Europe, the Caribbean and throughout the U.S., some of the more notable undertakings included the Renaissance Grand Beach Resort in St. Thomas, the Sheraton Hotel Charleston (SC), the Sheraton Crystal City (VA), and the Hotel George in Washington, DC. “In each quarter of 2003, Molinaro Koger doubled the number of transactions closed over the previous quarter,” contended Robert Koger, president of Molinaro Koger. He added: “This volume demonstrates that well-built, well-located hotels are maintaining desirable operating numbers, and that hotel real estate is once more a sought-after investment.” In line with observations that 2003 was a watershed year for hotel investment, Koger said: “There is tremendous amount of capital in the market seeking hotel assets. This has created strong deal-flow and aggressive pricing as buyers seek to acquire hotel assets in a rapidly improving operational environment.” Looking ahead, Koger offered: “I believe the hotel real estate market will experience an enormous transactional year in 2004.” He based this forecast on his firm’s findings that “transaction size is increasing as we head into 2004. “Throughout 2003, deals averaged in the $20-million to $30-million range, with few properties in excess of $50 million changing hands,” Koger claimed. “We anticipate that this will change in 2004, with institutional equity firms placing larger assets on the market to take advantage of the strong market for quality hotel properties.”
