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Record pricing for hotels in hot markets in early 2023
Despite a slowdown in hotel sales in second half 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, Fla., which was the third-largest single-asset sale in U.S. history, according to JLL. 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.
“Miami and Phoenix are two great examples of growing markets where year-end 2022 RevPAR has far exceeded 2019 performance by 24 percent and 19 percent, respectively,” says Melvin Chu, executive vice president, JLL Hotels & Hospitality Group. “