Investment sales in hotels plunged by more than 56% in California in 2023 as investors kept their powder dry waiting for better market conditions—the steepest cliff-dive for the hospitality sector in the Golden State since the global financial crisis.
Hotel transactions in California totaled $3.76B last year, less than half of the $8.6B in hotel sales volume in 2022. The 2023 tally is the lowest since 2009, when sales of hotels in the Golden State dropped by 75%.
The plunge in hotel sales was more pronounced in Southern California, which saw its 2022 total of $5.8B pared to $2.3B in 2023. Sales in Northern California dropped to $1.45B last year, compared to $2.8B the previous year, according to the annual California Hotels Survey from Newport Beach-based Atlas Hospitality Group.
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