IRVINE, CA—The recovering economy has spurred an uptick in tourism and a decrease in distressed hotel inventory, making this sector especially attractive for investors, says
The increased number of these assets being sold reflects the continuing recovery of the hospitality sector and the growing popularity of online auctions among owners of high-quality, non-distressed hotels, according to Auction.com. Sharga says, “As economic recovery has spurred an uptick in tourism and the hospitality sector continues to recover, we're seeing a significant decrease in distressed hotel inventory. This shift to more-tradition, high-quality assets coming up for sale is directly reflected in the recent closings and current inventory available on our platform.”
GlobeSt.com was unable to reach Sharga before deadline to discuss what makes hotels such an appealing asset class for investors.
Among Auction.com's March closings were an 81%-occupied, 758,000-square-foot industrial property in Gainesville, GA; Hampton Inn North Myrtle Beach-Harbourgate, a 101-key hotel in North Myrtle Beach, SC; Quality Inn Winter Park Village, a 200-key hotel in Orlando; Comfort Inn and Suites, an 86-key hotel in Surprise, AZ; an 82%-occupied, 27,000-square-foot retail center in South Plainfield, NJ; and a 50%-occupied, 27,000-square-foot office building located in Las Vegas.
Hotel sales have been particularly strong in the San Diego market. As GlobeSt.com recently reported, Strategic Hotels & Resorts Inc., along with its joint-venture partner, has signed an agreement with affiliates of Walton Street Capital L.L.C. and JMA Ventures LLC to sell a 100% interest in the 417-room Hyatt Regency La Jolla for $118 million. Also, as we reported earlier this month, CBRE Hotels arranged the sale of the 219-room Doubletree San Diego-Hotel Circle on behalf of two locally based investment entities to an affiliate of Oak Coast Properties LLC for an undisclosed amount.
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