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The Four Seasons Napa Valley Resort and Residences has sold for $2.1M per room in a deal purported to be the second-priciest on record in the United States.
The 85-room luxury hotel sold for $175M to Orange County-based real estate investment trust Sunstone Hotel Investors. News of the sale was first reported by The Wall Street Journal on Nov. 2, just one day after the resort opened. The per-room sale price trails just one other deal on record — Hyatt Hotels Corp.’s purchase earlier this year of the Ventana Big Sur resort for $2.5M a key, according to the WSJ.
Sunstone bought the hotel from property fund manager Alcion Ventures. The deal is the second North Bay Area buy this year for Sunstone, which paid $265M, or a little over $2M per key, for the 130-room Montage Healdsburg in Sonoma County in late April. At the time, the total sales price was the highest for the state since the onset of the coronavirus pandemic. Ohana Real Estate Investors sold the Montage Healdsburg.
“This sale reflects the strong interest from investors in best-in-class, leisure-oriented resorts as the hotel industry begins to recover from the effects of the COVID-19 pandemic,” James Cole, head of asset management of Ohana, said in a statement at the time of that sale.
Luxury hotels have outperformed the hospitality sector in the wake of the pandemic. Average daily rates for luxury properties in the first nine months of the year were $336, up from $303 during the same period in 2019, while industrywide rates are still lower than 2019 levels, according to data from STR and as reported by the WSJ.
Rates for a room at the Four Seasons Napa this month start around $1,500, according to the resort’s website. The property is the first Four Seasons within a working winery, according to a press release. The sale of the property is slated to close in the fourth quarter.
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