NEW YORK CITY—Despite low expectations by many, the US lodging industry achieved growth in all top line operating statistics, and remarkably, every significant metric completed the year at a record level during 2016. At this juncture, a cautious outlook for the sector remains, due in part to increases in new hotel supply in major US markets, the rise of alternative accommodations and the softening of income growth and property values. However, US consumer confidence is at a 16-year high, surpassing the levels reached before the 2008 financial crisis and rivaling the heady days of the dot-com boom.

The LW Hospitality Advisors (LWHA) Q1 2017 Major US Hotel Sales Survey includes 54 single asset sale transactions over $10 million, none of which are part of a portfolio. These transactions totaled roughly $3.6 billion, and included approximately 13,200 hotel rooms with an average sale price per room of $273,000. By comparison, the LWHA Q1 2016 Major US Hotel Sales Survey identified 41 transactions totaling roughly $2.6 billion including 9,400 hotel rooms with an average sale price per room of nearly $275,000. Eleven major Q1 2017 hotel sales occurred in California, followed by five in Florida, and four in Washington state. Noteworthy trades include Ashford Hospitality Prime's $1.2 million per room acquisition of the 80 unit Hotel Yountville in California and in Los Angeles, and JK Hotel Group's purchase of a remaining 80 percent stake in the 81 unit Sunset Tower Hotel at a total property basis of just under $1.5 million per room.