If you want to buy hotel in the city, you’d better be prepared to pony up, and move fast.
Sales totaled $500 million in the first half of 2014, a 133 percent increase over the same period last year, according to a mid-year report from Atlas Hospitality Group. San Francisco accounted for 20 percent of hotel sales statewide, and in terms of dollar volume left other regions, including Los Angeles, far behind.
Nineteen hotels have been sold here so far this year, led by South of Market’s 199-room Hotel Vitale, for $133 million, and Nob Hill’s 383-room grande dame Mark Hopkins, for $120 million. That says something, if more need be said, about San Francisco’s shifting economy.
Key drivers of the increase, according to Atlas, ”buyer demand looking for higher yields that hotels offer versus other forms of real estate,” short supply, and the influx of overseas investors, ”especially from China.”
Read more: SFGate San Francisco hotels selling like hot cakes