California Hotel Sales Cool Off

The DJIA fell 338 points on Friday while Nasdaq was down 154, the S&P 500 was down 43 points and the 10 year treasury yield was down .07 to 3.19%. Lodging stocks did better than the overall market with a mixed bag. SOND was up 7%, AHT was up 6% but VCSA was down -5% to lead the biggest movers.

IN OBSERVANCE OF THE U.S. LABOR DAY HOLIDAY, THERE WILL BE NO DAILY LODGING REPORT ON MONDAY, SEPTEMBER 5.

UBS cut its price target on Park Hotels to $15 from $22.

After a record-breaking 2021 for hotel sales in California, hotel transaction have cooled off in the state in the first six months of this year. The number of individual hotel sales declined by 9.9% and total dollar volume is down 33.6% thus far in 2022, according to Atlas Hospitality Group. In San Diego, 25 hotel were sold in the first six months of 2022, compared to 28 in the same time from in 2021. The most expensive local hotel sale of 2022, as reported by Atlas, was the 126-room Moxy Hotel in downtown San Diego at $46 million; next highest was the 90-room Inn at Rancho Santa Fe at $42.7 million; followed by the 90-room Courtyard San Diego Gaslamp/Convention Center at $41 million. Atlas reports that the media price per room has increased by 12.7% statewide, up from 127,285 in 2021 to a new California record at $143,443. In San Diego County, however, where individual sales of hotels decreased by 10.7% and total dollar volume was down 41.7%, the median price per room declined by 11%. Comparably, individual hotel sales in Orange County were down 34.5% and dollar volume decreased 16.8% in the first half of the year. The median price per room was up 13.7%. In Los Angeles County through the first six month of 2022, individual hotel sales declined by 21.7% and dollar volume was down 4.5%. The median price per room increased by 24.3%. According to Atlas, hotel investors looking at San Diego know that the region i