Hoping to ride the profitable wave of recent hotel sales, the San Francisco?s St. Regis just landed on the market for a whopping $140 million asking price.
With 260 rooms, 46 suites and 15,000 square feet of meeting space, that?s in the range of more than $530,000 per key.
If the hotel snags a buyer at the suggested price ? which has been the trend lately ? it would be the biggest deal in recent years, even topping the San Francisco Mandarin Oriental, which sold for $390,000 a room in 2011, and the Fairmont Hotel, which sold for $325,000 a room last year.
As?we previously reported, San Francisco?s soaring popularity with tourism, business and convention travel has energized the market in recent years.
Since 2010, transaction value has hit approximately $2.8 billion in the Bay Area. The majority of transactions in San Francisco have been led by REITS, followed by pension fund advisors and offshore capital, which accounted for about 20 percent of buyers, according Eastdil Secured managing director?Louis Stervinou.
?The fundamentals have improved, and we?re seeing better income levels in hotels,? Stervinou said at a panel hosted by the Urban Land Institute on Wednesday. ?With all the liquidity in the market, we?re seeing more interest from opportunity funds that want to put their money in key markets.?
The Clift, which was purchased by an affiliate of?Hospitality Properties Trust?for $120 million earlier this year, was the latest hotel to change hands in San Francisco.
Click here to read more.
Source: Ren?e Frojo (2013). St. Regis San Francisco on market for $140 million, San Francisco Business Times http://www.bizjournals.com/sanfrancisco/blog/2013/05/st-regis-san-francisco-up-for-140m.html?page=all published May 26, 2013. Viewed May 27, 2013,