The sale of the beachfront Ritz-Carlton on the South OrangeCounty Coast is expected to close in July. Alan Reay, president ofAtlas Hospitality Group, tells GlobeSt.com that the price per roomis the highest ever recorded in the more than 10 years that hisIrvine-based firm has been tracking California hotel sales.

Reay tells GlobeSt.com that the price reflects not only theluxury resort quality of the hotel but the "irreplaceable location"of the property, which sits on a bluff overlooking the PacificOcean. "Even if you had the land available today, it would take youyears and years to get it approved by the Coastal Commission, ifyou could get it approved," Reay says.

The Ritz-Carlton sale is just one of many in California in whichhotels are commanding top prices, Reay notes. "People ask me whyare so many of these deals selling, and why are they selling atsuch low cap rates," he says.