Tom York on Business: Robust hotel property market signals improvement in travel economy

The Embassy Suites La Jolla recently changed hands for over $666,000 per room. Courtesy of Hilton Hotels

Tourism, one of the region’s most important industries, is showing signs of life after a disastrous 2020. If hotel real estate transactions are any indication of future economic trends, good things are ahead.

Property sales here increased by 122% – from 22 in 2020 to 49 in 2021 Atlas Hospitality Group‘s 2021 Year-End Hospitality Survey.

Hospitality brokerage Orange County said in its report that dollar volume for hotel sales rose 290% year over year.

The most expensive transaction of the year involved the sale of the 340 rooms Embassy Suites La Jollawhere the price per room is more than $666,000.

the HiltonMission Valley guided sales in terms of the number of rooms. The 350-room hotel sold for $66 million.

Nationwide, Atlas President Alan Reey said the year saw a record number of hotel sales with 510 hotel sales, up 71% from 2020. With a dollar volume of just under $10 billion, that was lacking, which represents a 200% increase over 2020.

Interestingly, San Francisco saw hotel sales fall from nine in 2020 to six in 2021. The highest price per room ever paid for a California hotel was $2,542,373 per room for the 59 rooms Alila Ventana Inn & Spa in Big Sur.

“San Diego is high on the list of preferred choices for investors,” Reay said. “Over the past two years, owners have struggled due to the impact of COVID. So many are choosing to sell, especially given that buyers and lenders are setting their prices based on pre-COVID income and expenses. Many owners are realizing selling prices at or above 2019 levels.”

* * *

low-cost carrier faithful air will add non-stop service between the Lone Star capital of Austin and San Diego beginning April 20, airport officials said recently.

The airline will add seasonal nonstop service between Sioux Falls, SD, from May 19 to August 12, according to airport officials

* * *

Analytics platform for real estate in San Diego Deckard Technologies recently donated school supplies to the Iglesia Pentecostal de Colombia church in Medellín, Colombia.

Comuna 13, San Javier, where the church is located, is a parish in the city of Medellín that was considered by some observers to be one of the most dangerous places in the world in the 1990s, given gangs and a drug corridor. The community found a way out of this burden through culture and art, a spokeswoman said.

In addition to its headquarters in downtown San Diego, the real estate startup has offices in Colombia and Australia.

* * *

Recommendation platform for the sale of residential real estate homelight provided an interesting insight into San Diego’s highly competitive home market.

Nearly 27% of transactions here in Q3 2021 were all cash — the highest percentage in seven years.

And nearly 60% of brokers surveyed nationwide expect the cash phenomenon to continue this year, including in San Diego.

According to a press release, a third of buyers are first-time buyers who cannot use the proceeds from their old home to buy another, and most still need a mortgage.

But the startup says it now “facilitates” more than $1 billion worth of transactions a year through its extensive network of agents.

* * *

Another company closely associated with residential real estate, home depotrecently released what it calls Path to Pro Skills program that provides training and networking for anyone interested in working in the construction industry.

A labor shortage has held back the supply of new homes and affordability rates, according to a recent Home Builders Institute building report.

The company notes on its Path to Pro website that there are currently more than 300,000 construction vacancies with another 3.5 million set to open over the next three years.

Georgia-based Home Depot operates 13 locations in San Diego.

* * *

CamerEye, a local startup that claims to be reinventing pool and backyard safety through artificial intelligence, says it has closed a $1.1 million seed round. Crunchbase names San Diego Sports Innovators as an investor.

The company says its AI system warns of potential drowning by using an AI camera to create a virtual intelligent perimeter around a pool that distinguishes people from other objects, reducing the false alarms seen with other surveillance systems.

CamerEye says it has three patents pending and will be adding additional AI capabilities this year.

* * *

Here’s an item to chew on. Baja Jerkynow under the BajaVida Umbrella reports that it’s grown 337% since 2019, but better yet, it expects 470% growth in 2022.

Baja Vida says it works with major distributors, including KeHE, UNFI, Eby brown, Sysco and last McLane & Coremark.

The products are also sold on Amazon.

* * *

The Chargers professional football team may be gone, but they haven’t completely forgotten about us.

The team, now the Los Angeles Charges, has participated in a $50,000 grant to San Diego’s Boys and Girls Club.

The money will be spent to restore the lawn at the nonprofit’s Ramona branch.

The grant from the chargers that NFL Foundationand the nonprofit Local Initiatives Support Corp. is part of this year’s $6 million in field cleanup awards.

* * *

Local commercial real estate investment company Capstone Advisor SIt has donated $75,000 to local charities.

The company selected the nonprofit organizations based on the contributions of tenants and employees. A spokesman said the gift honors Capstone’s 25th birthdayth Anniversary.

Capstone owns and manages more than 5 million square feet of commercial real estate across the United States

* * *

Finally, this business news from North County.

Providers of coworking spaces Working in downtown San Diego has expanded its Carlsbad space by 50%, adding 13 offices and more meeting areas and outdoor workspaces.

Downtown Works Carlsbad now offers a mix of 43 furnished private offices with reclining desks, open desks and virtual office options.

Meanwhile, the company announces it will open another co-working location in Pacific Beach.

Tom York is a Carlsbad-based independent journalist specializing in writing about business and economics. If you have any news tips you’d like to share, send them to [email protected]







View Notes




Comments are closed.