By Mike Savino on November 8th, 2019
The Southeast region of the U.S. is currently the most active for single hotel sales and, unlike all other regions of the country, prices are rising too. In the year through September, the region represented more than one-quarter of U.S. hotel sector single asset sales.
Acquisition volume in the Southeast rose to $7 billion in the 12 months through the end of September, a 55% year-over-year increase. Average price per unit rose 49% over the same period. By contrast in the Northeast, West and Southwest regions, prices have been flat or falling.
The number one and number two largest deals in the U.S. in 2019 so far took place in the Southeast region: the Waldorf Astoria Boca Raton, which traded for $875 million, and Miami’s 1 Hotel South Beach, which changed hands for $610 million.
Developers, as well as investors, have their attention on the Southeast region. In the 12 months through September, four of the top 10 construction markets were in the region: Nashville, Miami/South Florida, Orlando and Atlanta.
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