SANTA ANA, CA—There's not a lot of hotel product out there, and when it does come up, it gets chased pretty aggressively, driving cap rates down for top-shelf, select-service hotels, CBRE Hotels SVP Rod Apodaca tells GlobeSt.com. As we recently reported, Apodaca and Bob Kaplan arranged the sale of the 121-room Hampton Inn & Suites Santa Ana/Orange County Airport for an undisclosed amount to a private investor, acting as exclusive agents for the seller, Pacifica Hiorange LP.
The local hotel market seems to be bucking the national trend, where Ten-X Research reports that fundamentals remain weak thanks to a heavy supply pipeline in many markets and continuing competition from AirBnB, although some price gains were seen nationally in September. We sat down with Apodaca for a chat about national and local hotel cap rates and what hotel investors are looking for in the Orange County market.
GlobeSt.com: With hotels having some of the highest cap rates among CRE property sectors, according to Ten-X, how is this affecting hotel sales in Orange County?
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Carrie Rossenfeld
Carrie Rossenfeld is a reporter for the San Diego and Orange County markets on GlobeSt.com and a contributor to Real Estate Forum. She was a trade-magazine and newsletter editor in New York City before moving to Southern California to become a freelance writer and editor for magazines, books and websites. Rossenfeld has written extensively on topics including commercial real estate, running a medical practice, intellectual-property licensing and giftware. She has edited books about profiting from real estate and has ghostwritten a book about starting a home-based business.
