Bay Space, California lodge gross sales implode as traders flee sector

OAKLAND — Gross sales exercise for the lodge markets within the Bay Space and California, in a renewed signal of the sector’s collapse following the coronavirus outbreak, imploded in the course of the first half of 2023.

The variety of inns bought within the Bay Space and statewide tumbled over the primary six months of this yr at a tempo that was paying homage to the nosedive that the lodging business suffered in California within the wake of the final recession of 2008 and 2009.

“Now we have seen nothing like this, nothing this dangerous,” mentioned Alan Reay, president of Irvine-based Atlas Hospitality Group, which tracks the lodge business in California.

Reay’s reference level is broad: Atlas Hospitality has been analyzing the statewide lodging sector for greater than 20 years.

Particularly, the variety of inns bought in California in the course of the first half of 2023 plunged by 52.9% in contrast with the primary six months of 2022, Atlas Hospitality Group reported.

In 2009, on the tail-end of the final recession, lodge gross sales in California tumbled 51%.

Each Northern and Southern California suffered large declines within the gross sales of particular person inns, Atlas Hospitality reported.

Northern California endured a 44.6% plunge in particular person lodge gross sales — particularly, 62 inns have been bought on this area within the first half of 2023 in contrast with 112 over the primary half of 2022.

Southern California suffered a 58.9% nosedive within the variety of inns bought. An estimated 62 inns have been bought in that area over the primary six months of 2023 in contrast with 151 within the first half of 2022.

The most important lodge deal in Alameda County for the primary half of 2023 was the acquisition of the 276-room Claremont Lodge within the Oakland-Berkeley space for $163.3 million.

The most important lodge deal in Santa Clara County over the primary six months of this yr was the sale of the 89-room Enviornment Lodge in downtown San Jose for $22.9 million.