California Sales In The Hotel Industry Hit New Records

Increasing sales prices, hotel sizes are driving sales in the California hotel industry.

For just over two decades, Atlas Hospitality Group—which is based out of Orange County—has been tracking hotel sales activity. They recently announced that in the first half of 2015, this industry has already broken records. Specifically, hotel sales in the first six months of the year surpassed $4.4 billion, numbers over any mid-year totals that have been posted since Atlas Hospitality began tracking these metrics in 1994. That's good news, since it means the California hotel industry has finally surpassed 2006's numbers, marking recovery from the Great Recession. Let's look at San Francisco as a specific example of the growth the California hotel industry is experiencing sales-wise. Prior to 2006, only one San Francisco hotel had ever sold for more than $500,000 a room. Between 2007 and 2014, no rooms sold over $500,000. In the first half of 2015 alone, though, five of the eight hotels sold have gone for over $500,000 a room. Not only are prices per room on the rise, the size of hotels is increasing, too. While the median room count for sold hotels was 61 in 2014, that number skyrocketed to 145 in this first half of 2015. There are a few factors to thank for this growth. The same consumer confidence and low interest rates that have been bolstering other industries are affecting hotel sales, but these sales records are also being driven by seller confidence. 2015's sellers believe they're getting a great price for their sale. Clearly, the California hotel industry is booming. Do you want to get a piece of it? Whether you're remodeling an existing property or want to complete a new build, contact Parkwest General Contractors. We have been fine-tuning our services for years so that we can offer hotel owners the absolute best in hospitality construction.