2025 deals in US way down, unlikely to change

NATIONAL REPORT — With U.S. transaction volume for hotel assets down almost 22% in the first half of 2025 compared to a year ago, a mantra seems to be holding: if owners don’t have to sell, they aren’t going to.

With no movement so far on interest rates and macroeconomic uncertainty, a slow deal environment is also expected to persist for the second half of 2025.

Many companies are on the sidelines and only transact opportunistically. But since PE firms have the biggest ‘checkbook’ they will continue to trade trophy properties at high prices.

Jan Freitag

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“The expectation is that the transaction environment remains muted as the interest rates remain in place and there is no real catalyst to jumpstart deals,” said Jan Freitag, national director of Hospitality Market Analytics for CoStar. “If you don’t have to sell, you won’t.”

The second quarter of 2025 was even slower than the first, according to Freitag, as Q2 transactions totaled $3.7 billion in the U.S., marking a significant decline from the $6 billion-plus sold in Q2 of the previous year.

Freitag said earlier this that part of the reason for the slower transaction volume is the continued strength of CMBS lending. He said that creates an environment where lending to existing owners can be more attractive because traditional or alternative debt can produce “equity-like returns.” This also gives owners a structure and opportunity to hold onto the property and wait for a better deal environment.

Freitag said the largest individual hotel deal of the quarter, the $205 million acquisition of the 56-key Silver Sands Beach Resort in Key Biscayne, Florida, was really for the land value, as the new owners, Coconut Grove, Florida-based Terra Group and Miami-based Fortune International, will tear down the existing property to make way for a 13-story luxury condo that will have the same number of rooms but more luxury amenities.

As usual, Freitag said the smallest deal size space ($10 million and below) is the most active, with trades of mostly select-service assets. Of the 600 U.S. hotel deals in Q2, he said just under 500 were in the sub-$10 million category.

Freitag also noted that private equity firms remain the most active in the 2025 deal space.

“Many companies are on the sidelines and only transact opportunistically,” he said. “But since PE firms have the biggest ‘checkbook’ they will continue to trade trophy properties at high prices.”

Because CoStar’s list includes just individual transactions, it doesn’t include the largest hotel transactions in 2025, notably:

• Ryman Hospitality’s $865 million acquisition of the JW Marriott Phoenix Desert Ridge Resort and its golf course in Arizona from Trinity Investments (since the property had multiple valuations, CoStar considers it a portfolio transaction).
• Henderson Park’s $422.5 million acquisition of the PGA National Resort & Golf Courses in Palm Beach Gardens, Florida, from Brookfield Asset Management. (A portfolio transaction for the same reason as above).
• Gencom’s $195 million acquisition of the Ritz-Carlton New Orleans and Courtyard New Orleans French Quarter in Louisiana.

Top deals of H12025

Below are CoStar’s top 10 individual hotels for the first half of 2025 by overall sales price and by price per room.

TOP 10 INDIVIDUAL HOTEL SALES, FIRST HALF 2025 (by sales price)

1. Silver Sands Beach Resort (Key Biscayne, Florida) — Independent, 56 rooms, ($3,660,714 per room), $205 million, Sold April 9, Buyer: Terra Group/Fortune International Group, Seller: Silver Sands Beach Resort, built in 1956
2. Kimpton Hotel Eventi (New York City) — Upper Upscale, 292 rooms, ($597,603 per room), $174.5 million, Sold May 1, Buyer: BRE Hotels & Resorts LLC, Seller: DLJ Real Estate Capital Partners, built in 2008
3. The Stanley Hotel (Estes Park, Colorado) — Independent, 194 rooms, ($841,443 per room), $163.24 million, Sold May 15, Buyer: Colorado Educational & Cultural Facilities, Seller: Grand Heritage Hotel Group, LLC, built in 1909
4. Holiday Inn Manhattan-Financial District (New York City) — Upper Midscale, 492 rooms, ($314,024 per room), $154.5 million, Sold June 25, Buyer: Hawkins Way Capital, Seller: Apollo Global Management, built in 2012
5. Viewline Resort Snowmass, Autograph (Snowmass Village, Colorado) — Upper Upscale, 254 rooms, ($566,918 per room), $143.997 million, Sold April 9, Buyer: Elevated Returns, Seller: High Street Real Estate Partners, built in 1967
6. The Ritz-Carlton, New Orleans (New Orleans) — Luxury, 528 rooms, ($268,324 per room), $141.674 million, Sold March 20, Buyer: Gencom, Seller: Quorum Hospitality, built in 1908
7. Courtyard Boston Downtown (Boston) — Upscale, 315 rooms, ($390,476 per room), $123 million, Sold January 10, Buyer: Seaview Capital, Seller: Ashford Hospitality Trust, Inc., built in 1925
8. Hilton Atlanta Airport (Atlanta) — Upper Upscale, 510 rooms, ($218,235 per room), $111.3 million, Sold March 28, Buyer: Highline Hospitality Partners, Seller: Wheelock Street Capital, built in 1989
9. Fairmont Dallas (Dallas) — Luxury, 545 rooms, ($203,670 per room), $111 million, Sold April 10, Buyer: Sixth Street Partners, LLC, Seller: Xenia Hotels & Resorts, Inc., built in 1969
10. Hotel Boulderado (Boulder, Colorado) — Independent, 160 rooms, ($637,500 per room), $102 million, Sold April 1, Buyer: AJ Capital Partners, Seller: Concept Restaurants, built in 1909

TOP 10 INDIVIDUAL HOTEL SALES, FIRST HALF 2025 (by price per room)

1. Silver Sands Beach Resort (Key Biscayne, Florida) — Independent, 56 rooms, ($3,660,714 per room), $205 million, Sold April 9, Buyer: Terra Group/Fortune International Group, Seller: Silver Sands Beach Resort, built in 1956
2. MOXY Miami Wynwood (Miami) — Upper Midscale, 120 rooms, ($1,586,538 per room), $99 million, Sold January 30, Buyer: Suzer Group, Seller: Baywood Hotels Inc. | Dolphin Capital Partners, built in 2024
3. The Fifth Avenue Hotel (New York City) — Independent, 110 rooms, ($1,036,200 per room), $76.368 million, Sold February 5, Buyer: Columbia Pacific Advisors, LLC/Empire Management, Seller: Empire Management, built in 1907
4. Planters Inn (Charleston, South Carolina) — Independent, 64 rooms, ($945,532 per room), $60.514 million, Sold March 12, Buyer: Crystal Creek Capital, Seller: Northwood Investors, built in 1803
5. The Stanley Hotel (Estes Park, Colorado) — Independent, 194 rooms, ($841,443 per room), $163.24 million, Sold May 15, Buyer: Colorado Educational & Cultural Facilities, Seller: Grand Heritage Hotel Group, LLC, built in 1909
6. Hotel Boulderado (Boulder, Colorado) — Independent, 160 rooms, ($637,500 per room), $102 million, Sold April 1, Buyer: AJ Capital Partners, Seller: Concept Restaurants, built in 1909
7. Courtyard Boston Copley Square (Boston) — Upscale, 81 rooms, ($617,284 per room), $50 million, Sold May 13, Buyer: Crystal Creek Capital, Seller: Campus Investments, Inc., built in 1910
8. Kimpton Hotel Eventi (New York City) — Upper Upscale, 292 rooms, ($597,603 per room), $174.5 million, Sold May 1, Buyer: BRE Hotels & Resorts LLC, Seller: DLJ Real Estate Capital Partners, built in 2008
9. Viewline Resort Snowmass, Autograph (Snowmass Village, Colorado) — Upper Upscale, 254 rooms, ($566,918 per room), $143.997 million, Sold April 9, Buyer: Elevated Returns, Seller: High Street Real Estate Partners, built in 1967
10. Hotel Viking (Newport, Rhode Island) — Independent, 208 rooms, ($456,130 per room), $94.875 million, Sold April 10, Buyer: KHP Capital Partners, Seller: KSL Capital Partners, built in 1927