The dollar volume of hotel sales in California dropped below $1.2B in the first half of this year, compared to $2.3B in H1 2023, as high interest rates and increasing operating costs had buyers focus on smaller properties.

Although the number of individual hotel deals was nearly the same in a year-over-year comparison—the deal count ticked down to 122 from last year's mid-year total of 124. The drop in dollar volume reflects a plunge in the average sales price of the transactions, according to Atlas Hospitality Group's mid-year sales survey.

The average sales price of a hotel dropped in California to $9.7M in the first two quarters of 2024, compared to $18.6M during the same period last year, Atlas reported.