News release

U.S. hotel sales kick-off 2023 with record-breaking pricing in growing markets

Investors believe long-term growth trends will outweigh near-term capital markets headwinds

February 15, 2023

Kristen Murphy

Capital Markets, Hotels & Hospitality and Value & Risk Advisory PR
+1 617 848 1572

CHICAGO, Feb. 15, 2023 – Despite a slowdown in sales in the second half of 2022 due to dislocation in the debt markets, hotel investors have kicked off 2023 with record sales for quality assets in highly desirable and growing markets.

A recent example of these transactions includes the sale of the Diplomat Beach Resort in Hollywood, Florida, which was the third-largest single-asset sale in U.S. history. In addition, the recent closing of the AC Hotel Phoenix Biltmore set a record price-per-key for upscale select-service assets in the Phoenix market. Both markets are highly desirable for investors as they show substantial population and demographic growth as well as boasting strong market fundamentals for hospitality and tourism.

“Miami and Phoenix are two great examples of growing markets where year-end 2022 RevPAR has far exceeded 2019 performance by 24% and 19%, respectively,” said Melvin Chu, Executive Vice President, JLL Hotels & Hospitality Group. “Other top 25 markets that we are seeing similar performance and transaction trends include Tampa, San Diego, Orlando and Orange County.”

According to Kevin Davis, Americas CEO, JLL Hotels & Hospitality Group, “Investors are buying into the thesis that long-term growth trends in certain markets will outweigh near-term capital markets dislocation. As a result, these investors are willing to buy at cap rates that are lower than the cost of debt because the growth story is so compelling.”

“Pricing for core and core plus hotel investments have held up extremely well despite volatility in the capital markets,” added Chu. “We’re seeing REITs and high net worth family offices step up by leveraging their strong balance sheet and relationship lenders to remain active investors of extremely high-quality real estate.”

JLL’s Hotels & Hospitality Group has completed more transactions than any other hotels and hospitality real estate advisor over the last five years, totaling $83 billion worldwide. The group’s 350-strong global team in over 20 countries also closed more than 7,350 advisory, valuation and asset management assignments. Our hotel valuation, brokerage, asset management and consultancy services have helped more hotel investors, owners and operators achieve high returns on their assets than any other real estate advisor in the world.

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About JLL

JLL (NYSE: JLL) is a leading professional services firm that specializes in real estate and investment management. JLL shapes the future of real estate for a better world by using the most advanced technology to create rewarding opportunities, amazing spaces and sustainable real estate solutions for our clients, our people and our communities. JLL is a Fortune 500 company with annual revenue of $19.4 billion, operations in over 80 countries and a global workforce of more than 102,000 as of September 30, 2022. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit