Leisure demand drives Q1 2023’s big dealsBy CoStar Group Share CoStar Group’s report on first quarter 2023 U.S. hospitality transactions above the $100 million mark analyzes what’s hot, where’s hot and which assets are heating up price per key. Click here to get the details. First quarter 2023 U.S. hotel deals above $100 million were all about leisure, according to Jan Freitag, national director of hospitality analytics at CoStar Group (STR’s parent company).He offers these takeaways from the transaction data.1. Leisure destinations continue to generate healthy RevPAR numbers and strong interest which translates into high prices. And, it’s not just resorts that will reflect that in their ask. Markets that delivered in Q1 included:*Miami (even though it’s at the airport, it should benefit from leisure demand)*Phoenix*Los Angeles2. Full-service properties that are disproportionately impacted by waning corporate demand are valued at prices well below 2019 results. Both properties are/were either closed or foreclosed and the new owners need to figure out a new way forward.*Hilton Minneapolis*New York Marriott Eastside3. The SIXTY Soho could also be seen as leisure-driven hotel with some corporate demand, which is why the property generated over $1 million per key for its 97 rooms, a post-Covid record for New York City.All these deals were consummated prior to the closure of Silicon Valley Bank and the takeover of Credit Suisse. It remains to be seen if the deal appetite continues as funding for deals may get harder to come by in the short term, according to Freitag.The views and opinions expressed in this column do not necessarily reflect the opinions of Hotel Investment Today or Northstar Travel Group and its affiliated companies.