Ohana Real Estate has sold the Montage Healdsburg to Sunstone Hotel Investors for $265 million. The newly constructed hotel is located in Sonoma County and features 130 rooms. The impressive price tag equates to $2 million per room, setting a new standard for US luxury hotel transactions, according to the seller.

This is the second time that Ohana has sold a hotel for $2 million per room. The first was in 2019 when the investor sold the Montage Beverly Hills for $2.1 million per room. At the time of the deal, the price was the highest price-per-key hotel sale in the nation. In the case of the Montage Healdsburg, the pricing is especially impressive considering the dislocation in the hotel market caused by the global pandemic. James Cole, Head of Asset Management at Ohana, says the deal illustrates strong investor interest for quality hotels and the early stages of the market recovery.

Despite the pandemic, Ohana remains bullish on the hotel sector, believing that it benefits from attractive supply-demand dynamics. Through the pandemic, it has been an active buyer of hotel product, and it intends to remain an active buyer this year. However, it is active in more than just the hotel sector. As part of this transaction, Ohana has maintained ownership of adjacent residential development sites and plans to develop custom home sites affiliated with the property.