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Hotel Sales in San Diego Jump 68 Percent in First Half of 2010

By Lori Weisberg, The San Diego Union-Tribune
August 16, 2010

Hotel sales throughout the state jumped dramatically during the first half of 2010, an indication that the hospitality industry is starting to shake off the economic doldrums of the last year.

In San Diego County, five hotels, including the posh Rancho Valencia, were sold during the first six months, compared to three sales during the same period a year earlier, according to a mid-year survey released Thursday by Irvine-based Atlas Hospitality Group. The dollar volume of the sales, which totaled nearly $67 million, was up 44 percent.

Statewide, individual sales rose 59 percent, while the value of those transactions surged 172 percent.

“We’re definitely off the bottom of where we were last year, and even though revenues for hotels are flat year to date, in June and July, San Diego is showing a good rebound, up about 10 percent,” said Alan Reay, president of Atlas Hospitality. “A lot of buyers who were sitting on the fence are saying now we better get in, and that should cause prices to go up.”

Reay also pointed out that there are fewer distressed properties on the market as lenders opt to modify troubled loans rather than take back hotels that have fallen in value.

<>

The 54-room Rancho Valencia was purchased earlier
this year by an investment group for $15.5 million
Within the state, the areas most in demand among buyers are San Francisco at the top, followed by Los Angeles and San Diego.

In San Diego, the hotels that changed hands this year were:

  • The 317-room Courtyard Mission Valley for $43 million
  • The 54-room Rancho Valencia in Rancho Santa Fe for $15.5 million
  • The 45-room Quality Inn North Coast in Encinitas for $3.1 million
  • The 30-room Downtown Lodge San Diego for $2.1 million
  • The 12-room Seabreeze Vacation Rentals in Carlsbad for $2.3 million
For the rest of the story as well as a PDF download of California Hotel Sales please visit:

http://www.signonsandiego.com/news/2010/aug/13/hotel-sales-in-san-diego-jump-68-percent/
 


Contact:

Lori Weisberg, Staff Writer
San Diego Union-Tribune
350 Camino de la Reina
San Diego, CA  92102
619-293-2251
lori.weisberg@uniontrib.com


Also See: Traveler Preferences are Changing: Upscale San Diego Hoteliers are Increasingly Becoming Pet Friendly Offering Pet Amenities From Surfing Lessons to Pet Psychic Sessions / August 2010

Former Owner of San Diego's W Hotel, Sunstone Hotel Investors, Wants to Acquire Manchester Grand Hyatt / August 2010

San Diego's Downtown W Hotel Now Owned by Lender / July 2010

During Downturn San Diego Hotel Owners Face a Delicate Balancing Act in Calculating When and How Much to Invest in Restorations / April 2010


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