Here are the top transactions of 2024

NATIONAL REPORT — The Ritz-Carlton Key Biscayne in Miami is the biggest hotel sale of the year, according to the latest data from CoStar, using the price per room metric.

The data, which was compiled through mid-July, shows that the luxury hotel in Florida, which Brookfield Asset Management sold for $400 million to Miami-based Gencom on January 12, sold for over $1.4 million per room.

The Turtle Bay Resort on Oahu Island in Hawaii, which is currently under contract for the sales price of $630 million (Blackstone sold the asset to New York City-based Host Hotels & Resorts), comes in second in the rankings with a sales price of over $1.3 million per room.

CoStar also ranked in the top 10 hotel sales in 2024 by room count, with the 1,218-key Sheraton Grand Chicago Riverwalk landing on top of the rankings. The hotel was reportedly sold in February from New York-based developer Tishman Realty to Marriott International and is still under contract, according to CoStar. Tishman developed the property and has owned it since 1992. The company exercised a settlement agreement from a 2017 lawsuit to trigger the sale to Marriott. The lawsuit was filed after Marriott acquired Starwood Hotels in 2016 and argued that a nearby Marriott property was in direct and unfair competition with the Sheraton. The right to force the sale was part of the settlement.

The Arizona Biltmore, the largest hotel sale so far in 2024, came in second in the room count rankings and fourth in the price-per-room rankings. The 703-key hotel sold in May for $705 million, which is just over $1 million per room.

Hotel Investment Today talked to Jan Freitag, senior vice president of Lodging Insights and national director of hospitality for CoStar, about the hotel M&A market through the first half of 2024.

Hotel Investment Today (HIT): Do you expect more transactions in the second half of 2024 than in the first half? Why?

Jan Freitag: When talking to brokers and lenders, the mantra seems to be that “next quarter activity will pick up.” But I have been hearing that since last year. It is my sense, though, that the era of “extend and pretend” is over and that lenders are pushing owners to refinance or sell, which could spark some more activity.

HIT: Do you anticipate that one rate cut from the Fed will be the catalyst for many more hotel transactions? Or will it take multiple cuts for investors to “get back in the water?”

Freitag: The rate cut or cuts will be enormously helpful psychologically, even if they do not move the numbers on the spreadsheets much. It will give borrowers the sense that at least rates are not getting any higher and allow them to plan for the future.

HIT: Which U.S. markets have the most potential M&A in this stagnant acquisition market?

Freitag: The cities in the coastal and sunbelt areas, which some refer to as the “smile” markets, will continue to be attractive since the demographics are favorable. In addition, luxury assets, regardless of location, seem attractive to a wide variety of investors.

See below for the data:

TOP 10 HOTEL TRANSACTIONS OF 2024 SO FAR (Price per room)

1. The Ritz-Carlton Key Biscayne, Miami (Florida) — Luxury, 423 rooms, sold January 12 for $400 million ($1.432 million per room)
2. Turtle Bay Resort (Oahu Island, Hawaii) — Luxury, 462 keys, under contract for $630 million ($1.363 million per room) 
3. Collinaire Luxury Suites (Miami) — Economy short-term rental vacations, 8 rooms, sold January 16 for $8.9 million ($1.112 million per room) 
4. Arizona Biltmore, LXR Hotels & Resorts (Phoenix) —Luxury, 703 rooms, sold on May 8 for $705 million ($1,002 million per room)
5. The Jules Savannah (Georgia) — Luxury, 6 rooms, sold on April 19 for $6 million ($1 million per room)          
6. 1 Hotel Central Park (New York City) — Luxury, 234 rooms, sold on July 12 for $233.77 million ($999,009 per room)           
7. Cottages at Healdsburg (California Wine Country) — Upper midscale, 4 rooms, sold on January 16 for $3.2 million ($800,000 per room) 
8. Sonder Flatiron (New York City) — Upper upscale, 62 rooms, sold on June 5 for $47.83 million ($771,392 per room) 
9. Embassy Suites by Hilton Nashville Downtown (Tennessee) — Upper upscale, Sold on April 15 for $347.28 million ($686,336 per room) 
10. Siesta Key Inn (Sarasota, Florida), Upper midscale, 8 rooms, sold on January 26 fpr $5.5 million ($684,375 per room)  

TOP 10 HOTEL TRANSACTIONS OF 2024 SO FAR (By room count)

1. Sheraton Grand Chicago Riverwalk (Chicago) — Upper upscale, 1,218 rooms, Under contract, price not disclosed  
2. Arizona Biltmore, LXR Hotels & Resorts (Phoenix) — Luxury, 703 rooms, sold on May 8 for $705 million ($1.002 million per room)
3. Hyatt Regency San Antonio Riverwalk (Texas), Upper upscale, 630 rooms, sold April 23 for $230 million ($365,079 per room)
4. Baltimore Marriott Inner Harbor at Camden (Maryland), Upper upscale, 524 rooms, sale pending, price not disclosed 
5. Embassy Suites by Hilton Nashville Downtown (Tennessee) — Upper upscale, Sold on April 15 for $347.28 million ($686,336 per room)
6. Turtle Bay Resort (Oahu Island, Hawaii) — Luxury, 462 keys, under contract for $630 million ($1.363 million per room)
7. W Hotel Fort Lauderdale (Florida) — Luxury, 435 rooms, sold on April 26 for $153.150 million ($352,069 per room) 
8. The Ritz-Carlton Key Biscayne, Miami (Florida) — Luxury, 423 rooms, sold January 12 for $400 million ($1.432 million per room) 
9. The Westin Chicago Northwest (Illinois) — Upper upscale, 416 rooms, sale pending, price not disclosed 
10. The Scottsdale Plaza Resort & Villas (Phoenix) — Upper upscale, 404 rooms, sold on April 4 for $124.3 million ($307,673 per room)