Year-to-Date Hotel Sales Flatten
A tight market for hotel financing and the sale of only one of Orange County’s largest 50 hotels contributed to a flattening of the local hotel sales market in the second quarter.
Through June this year, there were 17 hotel sales in the county, compared with 21 for the same period last year. Those 17 hotels had an average sales price of $2.8 million, down from $7.8 million last year, and an average price per room of $50,764, down from $54,061 a year ago. Last year’s sales, however, included the $75.2 million acquisition of the Anaheim Marriott and the $30 million acquisition of the Hyatt Regency Alicante, both by Tarsadia Hotels. This year, the largest hotel sale to date was the $12 million sale of the Ramada Inn Conestoga in Anaheim, now called the Conestoga Hotel at the Park.
Not counting the Anaheim Marriott sale, the average sales price for the first half of 1999 was $4.0 million and the average price per room was $50,420.
Ten of this year’s 17 sales have been in Anaheim, Garden Grove and Orange, near the Anaheim Resort area, which is expected to see significant occupancy and rate increases next year when the Convention Center remodel, Disney’s California Adventure and Downtown Disney are complete.
Five hotel sales this year were in coastal cities: the Casa Laguna Inn and Coast Inn in Laguna Beach, the Quality Inn Suites in Dana Point and the Pacific View Motel and Ritz Inn, both in Huntington Beach.
The Comfort Inn in Costa Mesa and the Royal Roman Motel in Santa Ana also changed hands.
Year-to-date hotel sales, ranked by sales price, are as follows:
