Los Angeles hotels are trading at twice the rate they did last year, thanks in part to the availability of financing and continued demand among buyers from China.
In L.A. County, 26 hotels traded hands during the first six months of the year, the same number as traded during the whole of 2016, according to a report by Atlas Hospitality Group cited by the Los Angeles Business Journal.
Those 26 deals accounted for $780 million in total dollar volume, a 46.1 percent increase from the same period last year. The average price was $238,000 per key, a 25.6 percent increase from last year.
“I think a lot of smaller players who made it through the recession are now seeing prices being offered that have them thinking that now is a great time to get out,” Atlas president Alan Reay told the Journal.
A $219 million deal for the W Hollywood hotel was the priciest deal of the year so far. The 305-key property sold in March to HEI Hotels & Resorts and Gatehouse Capital of Dallas. [LABJ] — Katherine Clarke