Though Slower-Paced, California Hotel Sales Set New Record for Median Price Per Room
State Program, Investors Continue To Seek Hotels To Convert to Housing
While hotel sales in California cooled from their highs last year, transactions during the first half of 2022 set a new median-price-per-room record and approached other records as well.
While hotel sales in California cooled from their highs last year, transactions during the first half of 2022 set a new median-price-per-room record and approached other records as well.
Atlas Hospitality Group’s California Hotel Sales Survey 2022 Mid-Year reports that the state had 263 individual sales during the first half of the year, down 9.9% from the first part of 2021. Total dollar volume reached $3.49 billion, a 33.59% year-over-year decrease. However, the state achieved a new record in median price per key at $143,443, a 12.7% year-over-year increase.
Los Angeles County led with the highest number of hotel deals with 36. The deal with the highest price per room was Orange County’s 295-room Fashion Island Hotel Newport Beach, which will become a Pendry Hotel, in a $145 million leasehold sale that breaks down to about $491,525 per room.
“The sales have cooled off a little bit from the record pace that was set in the first half [of last year], but it still came in as the second-highest number of individual sales and the third-highest total dollar volume in that six-month period,” Atlas President Alan Reay said.