Room for growth

Also coming up, Park Hotels & Resorts Inc. is acquiring Chesapeake Lodging Trust in a deal valued at roughly $2.7 billion, which analysts say they expect will drive up numbers during the second half of the year.

“We are going to see an increase in actual sales and an uptick in dollar volume that will surpass what we had in 2018,” Reay said. “The median price per room will end the year at the highest dollar volume ever seen.”

Still, many investors will likely hang on to properties because they’re getting strong returns, said James Stockdale of Jones Lang LaSalle Inc.

“The fundamentals in Southern California remain good despite all the new supply,” he said. “We have a lot of long-term holders.”

The sector’s strength also appears to be driving new hotel construction. In 2018, 11 new hotels opened in L.A. County, and 45 projects were under construction. By the end of 2019, Atlas estimates nearly 3,000 hotel rooms will be added to the market.

Hyatt Place Los Angeles/LAX/El Segundo

Rooms: 143

Buyer: Washington Holdings

Seller: Blackstone Group

Price: $44.5 million

Quality Inn & Suites Artesia – Cerritos

Rooms: 161

Buyer: Maya Inn & Suites Inc.

Seller: Hosanna Properties Inc.

Price: $13.8 million

Quality Inn & Suites Artesia – Cerritos

Rooms: 161

Buyer: Maya Inn & Suites Inc.

Seller: Hosanna Properties Inc.

Price: $13.8 million

Best Western Pasadena Royale Inn & Suites

Rooms: 61

Buyer: Grand Park Inn Inc.

Seller: American Koyu Corp.

Price: $12.7 million

Motel 6 Los Angeles – Bellflower

Rooms: 154

Buyer: 17220 Downey Bellflower

Seller: Accor

Price: $12.5 million

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