US 3Q24 deals up 8% versus previous quarter: LWHA

NATIONAL REPORT – The LW Hospitality Advisors (LWHA) Q3 2024 Major U.S. Hotel Sales Survey includes 97 single asset sale transactions over $10 million, which totaled just over $4.4 billion and included approximately 16,600 hotel rooms with an average sale price per room of $266,000.

In comparison, the LWHA Q2 2024 Major U.S. Hotel Sales Survey included 90 sales that totaled just over $4.0 billion and included approximately 14,350 hotel rooms with an average sale price per room of $279,000.

Comparing Q3 2024 with Q2 2024, the number of trades increased nearly 8% while total dollar volume grew approximately 11% and sale price per room declined by under 5%. By further comparison, the LWHA Q3 2023 Major U.S. Hotel Sales Survey includes 88 single asset sale transactions over $10 million which totaled roughly $3.2 billion and included approximately 14,000 hotel rooms with an average sale price per room of $228,000.

The largest transactions by total sale price during 3Q24 was Hyatt Hotel Corp.’s sale of the 1,641-room Hyatt Regency Orlando in Florida, which sold for $1.07 billion or $652,041 per room, to JV Ares Management & Rida Development. Hyatt retained a $265 million preferred equity interest, $100 million of which can be reduced to zero if/when (1) a renovation is completed, and (2) the hotel does not achieve certain NOI hurdles. Additionally, Hyatt provided an additional $50 million of seller financing for an adjacent 45-acre parcel which is slated for development of a 2,500 room Grand Hyatt Orlando. This trade represented 25% of Q3 2024 total dollar investment volume.

The largest U.S. hotel sale transactions by sale price per room was The Frisbie Group selling The Islands of Islamorada in Florida, with 30 units selling for $2.4 million per unit to The Wills Companies. The resort includes 22 waterfront villas and an eight-unit suite hotel, with plans to introduce the villas as luxury for sale residential units.