SAN JOSE – Hotel purchases have imploded in California and the Bay Area, one other sign that post-coronavirus economic pain, including high rates of interest, continues to be affecting the weak lodging sector across the state.
Investors paid a complete of $447.5 million for Northern California hotels in the primary six months of 2024, in keeping with a brand new report from Atlas Hospitality Group, which tracks the state's lodging market.
Purchase activity in Southern California totaled $739.4 million in the primary six months of 2024, a 53.7% decline from the identical six-month period last yr, in keeping with Atlas Hospitality estimates.
Hotel purchase volume in California totaled $1.19 billion in the primary half of this yr, a decrease of 48.5% in comparison with the primary six months of the previous yr.
According to Atlas Hospitality, three hotel deals were of interest in the primary six months of the yr in a brutal hotel investment market:
– Alameda County: A hotel, the 148-room La Quinta Inn in Oakland, was purchased for $12 million.
– Santa Clara County: One hotel was purchased, the 51-room Comfort Suites San Jose Airport, for a purchase order price of $10.25 million.
– In San Francisco, the costliest hotel deal was the acquisition of the 136-room Da Vinci Hotel San Francisco for $16.5 million.
“The continued impact of higher interest rates as well as increases in operating costs, particularly labor and insurance costs, are depressing sales volumes and prices,” reported Atlas Hospitality Group.
Originally published:
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