This story is heartbreakinght for you from Daily Upside. For more clear and insightful content, you can subscribe to our free Daily Upside newsletter Here.
“If I build it, they’ll come.”
In this case, “he” is a state-of-the-art luxury resort located opposite a vineyard and “they” are highly skilled real estate investors.
The new Four Seasons hotel owner in Napa Valley is close to selling one of the hotels at a near record price. Alcion Ventures, which has spent 10 years developing the property, has secured several offers of over $ 170 million for the 85-room resort.
It is not easy to be prevalent
Strong buyer’s interest at the Four Seasons Hotel in Napa shows that the luxury resort market is alive and well, despite troubles in the wider hospitality sector.
We are in a continental depression, in other words:
- The hotel industry overall is experiencing its worst year on record – hotel occupancy rates in the US hit 44% in 2020, down a third from the previous year.
- There was a record number of over 1 billion vacancies in unsold rooms in 2020, and revenue per available room decreased by nearly 50%. Data tracking firm STR estimates it will take until 2024 to recover the revenues.
In the land of high thread count, data points are more convenient. Two luxury Napa hotels operated by Auberge Resorts reported a strong second half of 2020, as wealthy guests from Silicon Valley sought respite after several months without travel.
Investors noted – earlier this month, the Pebblebrook Hotel Trust sold the 416-room Sir Francis Drake Hotel in San Francisco, bringing in $ 158 million in revenue.
That’s one more expensive switch
Four Seasons Napa, located in Calistoga, is scheduled to open for business in the second quarter. Current bidding for the property, including one from California-based Sunstone Hotel Investors, estimates the resort more than $ 2 million per key.
411 on the PPK: Hotels are usually valued at key price, which helps to increase the volume of properties of different sizes and number of rooms.
Get the Guinness Book of Records on the phone – only two hotels in the US have sold more than $ 2 million for the key: the Hawaii Four Seasons Resort Hualalai and the Montage Beverly Hills Hotel.
Ready meals: Will they accept Hilton Honors Points? Please?