COVID economy: Bay Area, California hotel purchases show big rebound
COVID economy: Bay Area, California hotel purchases show big rebound
Amid massive job losses for lodging employees, investors grab choice hotel properties
SAN JOSE — Buyers grabbed hotel properties in the Bay Area and California at a record pace during the first half of 2021, a sign investors are confident the state and region will recuperate from coronavirus-linked maladies.
The Bay Area was one of the regions that led the boom in hotel purchases from January through June of this year, a new report from Atlas Hospitality Group shows.
Among Northern California regions, Santa Clara County generated the most hotel purchases and the largest combined dollar amount over the first six months of 2021, according to the report.
“California hotel sales have completely rebounded from the COVID-19 impacted results that we saw” over the first six months of 2020, the report stated.
In California, 293 hotels were bought during the first six months of 2021, up 157% from the 114 hotels that were bought statewide over the first six months of 2020, according to Atlas Hospitality, which tracks the lodging sector in California.
The surge was far more pronounced in Northern California compared with Southern California, the report determined.
In Northern Calfornia, 141 hotels were bought over the first half of this year, up 200% from the 47 hotels that were bought in the first half of 2020.
In Southern California, 152 hotels were purchased in the January-through-June period of 2021, an increase of 127% from the same six months in 2021.
The combined dollar amounts during the first half of 2021 set an all-time record for a six-month period, according to the report.
The dollar volume for hotel purchases in California totaled $5.26 billion from January through June of this year, a jaw-dropping 451% jump from the $955.4 million in hotel deals for the same six-month period of 2020.
Northern California’s combined purchase amount was $2.8 billion over the first six months of 2021, up a stunning 578% from the same period the year before. Southern California posted a combined purchase amount of $2.46 billion, an increase of 354% from the first half of 2020.
Santa Clara County generated $600.4 million in hotel purchases during the first six months of 2021, by far the largest dollar amount for a county in Northern California.
Statewide, Los Angeles County generated the largest dollar amount in hotel purchases for a county: $911.6 million.
The purchase of the Alila Ventana Inn & Spa in Big Sur along the Monterey County coastline for $148 million worked out to $2.51 million a room — the highest price per room ever paid for a hotel in California, according to Atlas Hospitality.
In Santa Clara County, the largest hotel deal by dollar amount was the purchase of the Sheraton Hotel Milpitas, a 229-room hotel that was bought for $82.5 million.
Alameda County’s largest hotel deal during the six months was the 219-room Four Points by Sheraton Pleasanton, which was bought for $75.1 million.
