Bay Area, California, hotel deals show a big rebound
SAN JOSE – Buyers have taken over hotel properties in the Bay Area and California at a record pace in the first half of 2021, a sign that investors are confident the state and region will recover from illnesses linked to coronavirus.
The Bay Area was one of the regions that led the hotel buying boom from January through June of this year, according to a new report from Atlas Hospitality Group.
Among the regions of northern California, Santa Clara County generated the most hotel purchases and the highest combined amount in the first six months of 2021, according to the report.
âHotel sales in California have fully rebounded from the COVID-19 impacted results we’ve seenâ in the first six months of 2020, the report said.
In California, 293 hotels were purchased in the first six months of 2021, up 157% from the 114 hotels purchased statewide in the first six months of 2020, according to Atlas Hospitality, which tracks the industry. of accommodation in California.
The push was much more pronounced in northern California than in southern California, the report determined.
In northern Calfornie, 141 hotels were purchased in the first half of this year, up 200% from the 47 hotels purchased in the first half of 2020.
In Southern California, 152 hotels were purchased between January and June 2021, an increase of 127% from the same six months in 2021.
Combined dollar amounts in the first half of 2021 set an all-time high over a six-month period, according to the report.
The dollar volume of hotel purchases in California totaled $ 5.26 billion from January to June of this year, a staggering 451% jump from the $ 955.4 million in hotel deals for the same period six months in 2020.
Northern California’s combined purchases were $ 2.8 billion in the first six months of 2021, up 578% from the same period a year earlier. Southern California posted a combined purchase amount of $ 2.46 billion, an increase of 354% from the first half of 2020.
Santa Clara County generated $ 600.4 million in hotel purchases in the first six months of 2021, by far the highest amount for a county in northern California.
Statewide, Los Angeles County generated the largest dollar amount in hotel purchases for a county: $ 911.6 million.
The purchase of the Alila Ventana Inn & Spa in Big Sur along the Monterey County coast for $ 148 million represented $ 2.51 million per room – the highest per room price ever paid for a hotel in California, according to Atlas Hospitality.
In Santa Clara County, the biggest dollar hotel deal was the purchase of the Sheraton Hotel Milpitas, a 229-room hotel that was purchased for $ 82.5 million.
The biggest hotel deal in Alameda County in the six months was the 219-room Four Points at the Sheraton Pleasanton, which was purchased for $ 75.1 million.