IRVINE, CA-Look for fast-rising hotel sales to keep up the pace this year, locally based Atlas Hospitality says in its latest report on the California Hotel sales market. The number of California hotel sales jumped 80.4% to 166 in 2010, up from 2009’s record low of 92, according to the Atlas report. Total dollar volume of sales was up 240.6% to more than $1.78 million.

Atlas founder and president Alan Reay tells GlobeSt.com that the company expects that the number of sales this year will surpass the number for 2010, rising to 200 or more transactions. In addition, Atlas expects the median price per room to increase anywhere from 5% to 10%, with especially strong activity on trophy hotels. "The larger hotel purchases will be dominated by REITs," he says.

One of the trends Atlas expects this year that will be nearly all-new from last year is the start of construction in select markets. "This will primarily be in the Marriott and Hilton select‐service brands," the company's forecast says. Another trend that has emerged is that lenders have begun to sell hotel loans. That will continue this year, with lenders aggressively selling the loans, particularly in secondary and tertiary markets, according to the forecast.

The Atlas figures for 2010 validated the company's forecast at the beginning of last year, when it estimated that sales would increase dramatically from the 2009 record low. The company predicted 150 to 175 transactions, compared with the 166 that actually closed.

The sales figures for 2010 show some differences between the Southern California and Northern California markets. Fpr example, the median price per room in California dropped 5.2%, but in Northern California it was down only 1.7% while in Southern California it decreased 17.9%.

Alameda County posted the largest median price per room decline, down 33.4%. San Francisco County showed the biggest increase in the number of sales, up 650%. Los Angeles County followed with 575%. The most expensive sale, on a per room basis, was the St. Regis Monarch Beach in Dana Point at $587,500 per room.