Median sale price of large US hotels declined in Q1
Despite the decline, experts at the Cornell Center for Hospitality Research expect the value of large hotels to increase in the second quarter of 2024
In the first quarter of 2024, the median sale price and number of sales of large hotels (classified as those sold for $10 million or more) declined 24.6% and 33.9%, respectively, quarter over quarter and 22.2% and 14.3%, respectively, year over year. While prices for large hotels continued to soften, prices for smaller hotels remained relatively flat in comparison.
Key takeaways
- Both the median sales price and the number of sales for large hotels declined in the first quarter of 2024, according to newly released indexes from the Cornell Center for Hospitality Research;
- During the first quarter, hotels in prime markets, often referred to as gateway cities, performed better than those in non-gateway cities. However, both large and small hotels in both market categories experienced declines in rates and transaction volume;
- Looking ahead, researchers expect prices for large hotels to increase and prices for small hotels to decrease in the second quarter of 2024.
Download the full report at the Cornell Center for Hospitality Research