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San Diego Hotel Transactions Up 70% In First Half Of 2017

San Diego Hotel Transactions Up 70% In First Half Of 2017
The Palm Court at the Park Hyatt Aviara Resort Hotel in Carlsbad, Calif.

Hotel transactions in San Diego County increased in the first six months of 2017, up 70% from previous midyear sales. The total sales dollar value rose 54%, according to a midyear hotel sales report from Atlas Hospitality Group. The average price per room rose 2% compared to hotel transactions during the first half of 2016, but the median price per room dropped 6%.

The sale of the Park Hyatt Aviara Resort Hotel in Carlsbad to lender CW Capital Asset Management was the largest and most expensive hotel transaction at $185.6M, the report noted. That transaction came after a years-long struggle by the previous owners to repay debt coming due, the San Diego Union-Tribune reports, which noted a grant deed in lieu of foreclosure transferred the property to the lender for the amount of unpaid debt. Broadreach Capital Partners paid $251M in 2007 for controlling interest in the 329-room hotel, which was formerly managed by Four Seasons.

Overall, there were 206 hotel transactions in California through the first six months of 2017, a midyear record. The previous midyear high was in 2014, when 187 hotels were traded.

The 80-room Hotel Yountville in Napa County brought the highest price per room at more than $1.2M, and the most expensive sale overall was the $219M paid for the W Hollywood, Atlas reported.