Southern California hotel investors shifted gears, buying more properties but smaller properties in the first half of 2019.
According to Atlas Hospitalities’ biannual report on hotel transactions, 56 hotels in the four counties covered by the Southern California News Group were purchased in the first half of the year compared to 41 in 2018. My trusty spreadsheet tells me that the region was 39%. from all over California. hotel business so far this year compared to 31% in 2018.
With the increase in shopping, appetite has reduced. The average hotel sold in Southern California had just 68 rooms this year compared to 104 in 18. This helps explain why the price per room paid locally was on average 22% lower this year.
The regional trend contrasts sharply with transactions in the rest of the state, where 89 hotels were sold in the first six months of the year. This is a slight decrease from 93 in 2018. The size of the average sold was stable at 82 rooms and the price per room increased slightly by less than 1%.
By county, you can see this pattern more sales / small hotels in Southern California:
Los Angeles County: 22 sales compared to 14 in ’18. Average rooms? 65 versus 86. Most expensive sale? 143-room Hyatt Place LAX: El Segundo for $ 44.5 million.
Riverside County: 12 sales compared to 13 in ’18. Average rooms? 62 against 118. Most expensive sale? 502-room Westin Mission Hills Golf Resort at Rancho Mirage for $ 27.3 million.
Orange County: 11 sales compared to 8 in ’18. Average rooms? 103 against 119. Most expensive sale? Newport Beach Marriott Bayview has 254 rooms for $ 78 million.
San Bernardino County: 11 sales compared to 6 in ’18. Average rooms? 48 against 93. Most expensive sale? Comfort Suites Ontario convention center with 100 rooms for $ 14.3 million.