New hotel deals in the US are expected to reach $6bn for 2010, way ahead of an earlier forecast of $3.5bn.
Publicly traded lodging real estate investment trusts (REIT) are better positioned to buy hotels than private REITS because of their access to public markets, according to a Baird Research note published in late May 2010.
This year, 71% of hotels sold were bought by public REITs, while public REITs own just 4% of US hotels, according to Reuters.
Hotel investments amounted to $2.2bn in May, much of which was captured by REIT.
The outlook for the lodging sector has improved due to business travel picking up and rising room rates.