Low RevPAR growth and the balancing out of supply and demand contributed to the decrease in hotel sales in 2019, according to Hotelivate and the LW Hospitality Advisors 2019 Major U.S. Hotel Sales Survey.

U.S. HOTEL SALES decreased nearly 21 percent in 2019 compared to the previous year, according to hospitality consulting firm Hotelivate. Low RevPAR growth and the balancing out of supply and demand contributed to the decrease.

The total dollar volume of transactions declined roughly 3.3 percent and sales price per room increased 1.9 percent, according to Hotelivate, citing the LW Hospitality Advisors 2019 Major U.S. Hotel Sales Survey. The survey included 164 single asset sale transactions over $10 million, totaling $17.7 billion and including approximately 48,800 hotel rooms with an average sale price per room of $363,000.

It found 66 of the 164 transactions, or 40 percent of the total number of 2019 sale transactions, happened in three states. Florida recorded 36 hotel sales and became the most active transaction market, followed by California and New York with 18 and 12 trades respectively.

Of all the transactions, 34, or 21 percent, were for greater than $100 million each while 18 of the trades were between $100 and $199 million. Five of the total 2019 hotel sales were between $200 and $299 million.

“Even though the U.S. hotel industry registered record-breaking performance levels during 2019, RevPAR growth was the lowest since the current cycle began in 2010,” Hotelivate’s report said. “Amid hotel demand and supply growth in relative equilibrium, continued inventory growth of Airbnb and other professionalized short-term rental platforms has the lodging sector now grappling with a lack of pricing power. The good news is that numerous municipalities have implemented regulations that should curb the impact of some of this alternative rental inventory on the hotel sector.”

In January, HVS reported that hotel transactions were strong at the beginning of 2020 and that in the last quarter of 2019 limited-service hotels were still recovering faster than other segments from the previous downturn.