S&P Global Market Intelligence offers our top picks of real estate news stories published throughout the week.
US hotel industry growth softened in the second quarter, with occupancy declining 1.5% on an annual basis, according to a report from CBRE.
The average daily rate rose 2.6% year over year, its slowest growth pace since the first quarter of 2021. Revenue per available room was up 1.1%, compared with the 15.9% increase recorded in the previous quarter.
Total reservations slid 1.2% year over year, driven by declines in the walk-in, phone, group and online travel agency booking channels.
Hotels in urban locations were the only properties to post year-over-year gains in occupancy. Occupancy contracted year over year at suburban, airport and resort locations.
CHART OF THE WEEK: US REIT discount to net asset value slips by July-end
⮞ As of July 31, US equity real estate investment trusts traded at a median 15.9% discount to their consensus net asset value (NAV) per share estimates, compared with an 18.2% discount as of July 2.
⮞ Office, hotel and diversified REITs recorded the largest NAV discounts at 33%, 30.5% and 24.2%, respectively.
⮞ Casino, healthcare and datacenter REITs traded at median premiums to NAV as of the end of July.
Property trade
– Bridge Investment Group Holdings Inc.'s Bridge Multifamily Fund III is selling a portfolio of real estate assets to the continuation fund Bridge Multifamily CV LP in a deal valued at about $550 million.
– Vornado Realty Trust signed an agreement to sell four retail properties across Manhattan, NY, and closed on the sale of The Armory Show in New York. The combined sale price was $124.4 million. The four properties are 510 Fifth Ave., 148 – 150 Spring St., 443 Broadway and 692 Broadway.
– An affiliate of Finmarc Management Inc. sold Largo Town Center in Upper Marlboro, Md., to KPI Commercial LLC for $70 million, the Washington Business Journal reported, citing Finmarc. The retail center is fully leased and spans 280,000 square feet at 950 Largo Center Drive.
Joining forces
– The RMR Group Inc. agreed to acquire MPC Partnership Holdings LLC for $80 million in cash, plus up to $20 million in potential incremental earnouts. MPC, which does business as Carroll, is a vertically integrated multifamily platform that manages 81 properties mainly located in the US Sunbelt markets. The deal is expected to be completed in the fall.
– Boston Properties Inc. disclosed in its second-quarter earnings report that it formed a 55/45 joint venture with an institutional investor to develop 343 Madison Ave. in New York City, next to Grand Central Station. The project will include an approximately 900,000-square-foot premier workplace building with ground floor retail. The joint venture also signed a 99-year ground lease with the Metropolitan Transportation Authority for the site, which spans about 25,000 square feet.
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