Summary:
- Hotel sales in Q2 rose 7 percent from Q1; volume up 17 percent.
- Average deal size rose 9 percent; price per room up 12 percent.
- Volume fell $700 million and price per key dropped $54,000 from second quarter 2024.
THE NUMBER OF U.S. hotel sales rose 7 percent from first quarter 2025, while dollar volume increased 17 percent, according to LW Hospitality Advisors. Average deal size grew 9 percent and price per room rose 12 percent.
The LW Hospitality Advisors “Q2 2025 Major U.S. Hotel Sales Survey” recorded 89 single-asset hotel sales of more than $10 million, totaling nearly $3.3 billion for about 14,500 rooms. The average deal size was $36.7 million, with an average price per room of $225,000.
Compared to a year earlier, second quarter 2025 saw one fewer sale, with total volume down $700 million and price per key down $54,000. Most sales are smaller and financed through debt funds or regional banks with less restrictive terms than large banks. Some larger transactions this year involved institutional assets acquired below replacement cost.
Blackstone’s $200 million purchase of the 785-room Sunseeker Resort Charlotte Harbor in Florida reflects this trend. The reported development cost was $720 million.
California and Florida accounted for 24 hotel sales in second quarter 2025, or about 24 percent of the national total, representing more than $583 million in volume, or 18 percent of the quarter’s aggregate.
Colorado recorded seven sales totaling approximately $397 million, or 12 percent of the national total. Texas and Tennessee each reported seven sales as well, totaling about $222 million and $213 million respectively, or 7 percent each of national second quarter volume.
In July, JP Morgan reported June 2025 commercial real estate sales totaled $38 billion, down 15.7 percent from $45.1 billion a year earlier, with entity-level deals dropping to $887 million from $10 billion.
