Large hotel transactions are on the rise, with total single-asset hotel transaction volume for deals larger than $200 million reaching its highest level in eight years, according to JLL’s Hotels & Hospitality group.
Year-to-date, there has been a 59% increase in transaction volume for single-asset deals larger than $200 million compared to the same period in the prior year, with a total of $4.0 billion recorded. This also represents a 15% rise from 2019 levels.
This upward trend is fueled by eight noteworthy closings this year, including the most recent sale of the Hyatt Regency Orlando for $1.1 billion, the Arizona Biltmore hotel for $705 million and other, including the Ritz-Carlton Key Biscayne, Eau Palm Beach Resort & Spa, 1 Hotel Central Park New York and Hyatt Regency San Antonio.
Moreover, Blackstone’s recent sale of the Turtle Bay Resort in Oahu closed at $725 million. This resort will be transformed into a Ritz-Carlton, with Marriott contributing a record-high $45 million in key money—an attestation to the asset’s strategic value.
Expect a continued increase in investor momentum for similar marquee, large transactions to continue over the short-to-medium term, JLL forecasted.
