Total Dollar Volume for California Hotel Sales Grows in 2019
Total Dollar Volume for California Hotel Sales Grows in 2019
Hotel Management
02/25/20
Total Dollar Volume for California Hotel Sales Grows in 2019
By Alicia Hoisington
Total dollar volume for hotel sales in California as of year-end 2019 was up 7.4 percent compared to 2018, according to Atlas Hospitality Group’s “California Hotel Sales Survey: 2019 Year-End.” That was also the fourth-highest growth on record.
During the year, 297 hotels in the state changed hands, a 6 percent increase over 2018 but still below the running five-year average of 331 deals, according to the report. Meanwhile, the median sales price per room dropped 2.6 percent from the record set in 2018. However, it was still the second highest median price per room since data has been recorded, and the figure has increased more than 120 percent over the past 10 years.
Additionally, a new record high sales price per room was set with the sale of the Montage Hotel Beverly Hills at just under $2.1 million per room. This was 21.3 percent higher than the previous record set by the Malibu Beach Inn in 2015.
Following are some notable figures and sales from the report.
Growth Counties
Orange County experienced the highest jump in total dollar volume growth, rising 188 percent. At $477.3 million, the county’s 400‐room Monarch Beach Resort in Dana Point was the most expensive California sale in 2019. It also was the highest Orange County price per room paid at over $1.1 million, the second highest for California.
San Francisco County saw the largest percentage increase of any county in the state in regard to median price per room, which grew 108 percent. The 155‐room Loews Regency in San Francisco was the largest sale on a per room basis, at $759,387.
Santa Clara County hotel transactions went up 100 percent in 2019, from four to eight sales. The most expensive sale in the county was the $98.5 million, 210‐room AC Hotel by Marriott in San Jose. The hotel also notched the highest price per room paid in the county at $469,408.
Mixed Bag
San Diego County experienced a 26 percent decrease in individual transactions, falling from 27 to 20 sales during 2019. However, total dollar volume increased 84 percent in the county.
Total dollar volume in Riverside County dropped 62 percent in 2019. The county did experience a 19 percent increase in transactions, rising from 21 to 25 deals during the year.
Alameda County saw a 50 percent decrease in individual transactions, from four to two. Total dollar volume also went down 9 percent. However, average price per room increased 79 percent and the median price per room went up 76 percent in the county.
The median price per room dropped 48 percent in Sacramento County, while the average price per room decreased 12 percent. Meanwhile, total dollar volume went up 5 percent in 2019 for the county.
