Hotel Sales Get 2023 Off to a Strong Start with Pricing Records

Article originally posted on HERE on February 20, 2023

Following a slowdown in sales in the second half of 2022 due to dislocation in the debt markets, hotel investors have kicked off 2023 with record sales for quality assets in highly desirable and growing markets, JLL reported.

A recent example of these transactions includes the sale of the Diplomat Beach Resort in Hollywood, FL, the third-largest single-asset sale in U.S. history. In addition, the recent closing of the AC Hotel Phoenix Biltmore set a record price-per-key for upscale select-service assets in Phoenix. Both markets are highly desirable for investors, with  substantial population and demographic growth along with strong market fundamentals for hospitality and tourism.

“Miami and Phoenix are two great examples of growing markets where year-end 2022 RevPAR has far exceeded 2019 performance by 24% and 19%, respectively,” said Melvin Chu, EVP, JLL Hotels & Hospitality Group. “Other top 25 markets where we are seeing similar performance and transaction trends include Tampa, San Diego, Orlando and Orange County.”