Does California have a hotel bubble?
August 18, 2015
Hotel buyers are spending in record fashion in California this year. [OC Register]
Buyers spent $4.4 billion on 174 California hotels in the first half of 2015, according to Atlas Hospitality Group of Irvine. That surpassed the annual total spent on hotels for every year except 2006.
Hotel buyers spent 64 percent more in the first six months of 2015 than they did over the same period of 2014. The median sales price shot up 65 percent over three years, according to Atlas.
In January, luxury hotel owner Strategic Hotels & Resorts Inc. purchased the 250-room Montage Laguna Beach for $360 million. The sale set a California price record of $1.4 million per hotel room.
Strategic Hotels executives are now saying they are considering a possible sale of the company.
Last year, Hotel Oceana in Santa Barbara sold for $41.7 million. It was purchased by a Philadelphia company.
The Inn At Avila Beach was recently on the market for $7.95 million. It is a 31-room economy hotel.