There is no asset class in the greater Puget Sound-region that is not doing well or selling at the moment. Apartment complexes are selling across the region at breakneck speed, office properties are gaining traction throughout the area, industrial assets are selling at new highs and speculative developments are planned in several locations across the Seattle region. Add to that the hotel properties, as well, which have seen a slew of transactions in 2016.
The latest one is the Sandstone Inn Econo Lodge SeaTac, a 94-room airport property, which sold last week for $23,911,445, or nearly $254,377 per room. The property was sold by Bob Shing-Yeen Sheen, and the buyer was Gordon C.Y. Tang, according to public documents.
Hotel sales have had a robust 2016 in the greater Puget Sound region. According to the most recent, second quarter of 2016 Seattle hotel market research report by Kidder Mathews hotel occupancy rates in and near Seattle are expected to remain strong through 2016 and then to trend downward for several years. During the first half of 2016, and excluding national portfolios, there were 12 sales of hotels in King, Pierce and Snohomish counties at prices exceeding $2MM. By comparison, there were 11 such sales in all of 2008, 3 in 2009, 5 in 2010, 9 in 2011, 15 in 2012, 9 in 2013, 15 in 2014, and 17 in 2015, stated the report.
Among the seven sales under $20 million, prices ranged from $53,750 per room to $131,959 per room and from $81 per square foot to $353 per square foot. For the five sales at the top of the market, prices ranged from $198,431 per room to $695,833 per room and from $305 per square foot to $708 per square foot.