The hotel industry has staged an impressive comeback from the depths of the recession, with California poised to see considerably more investment in real estate acquisitions and new development, a panel of experts agreed on Friday.
Not only are hotels consistently seeing their room revenues rising, but prices paid for a growing number of hotels, particularly coastal properties, have spiked to more than $1 million a room, and investors are looking to develop new properties.
That marks a big change from the recent past when there have been very few new hotels sprouting from the ground.
“We’re pretty much back to the peak prices we last saw in 2007,” said Alan Reay of Atlas Hospitality Group, one of several hotel experts speaking at a lodging industry forecast sponsored by R.A. Rauch & Associates. “Dollar volume of acquisitions was up 35 percent last year, and the (median) price per room skyrocketed over 40 percent in San Diego last year.”