Despite 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.
A recent example of these transactions includes the sale of the Diplomat Beach Resort in Hollywood, Florida, which was 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 the Phoenix market. Both markets are highly desirable for investors as they show substantial population and demographic growth as well as boasting strong market fundamentals for hospitality and tourism.
