The hotel market in San Francisco has rebounded for sure and the prices have firmed up in 2011. The increase in demand may see some luxury properties coming up for sale at reasonably higher prices. The Ritz Carlton in San Francisco may be one of them and the experts from the industry believe that if the hotel is listed in the coming weeks it could be valued at $500,000 per room and fetch a significant price of $168 million. According to trade publication Real Estate Alert, Host Hotels & Resorts who own the Ritz Carlton San Francisco could be selling more hotels.
Edward Walter, their CEO believes that the market values of hotels have recovered after hitting rock bottom during the recession with San Francisco recording some of the biggest price increases in 2011. The upward trend is continuing in 2012. The Westin San Francisco which sold last year FOR $172 million had twice as many rooms as Ritz Carlton which is being valued at $168 million. Host Hotels have six more hotels in the Bay Area but have not elaborated their plans as yet. The company holding a total of about 72,000 hotel rooms had a gross revenue of $1.66 billion last year.
The stronger prices and higher valuations in San Francisco is being encashed as an opportunity by Host Hotels. The industry experts agree that the company must be considering letting go their San Francisco trophy only because it enables them to deploy that capital in markets which offer better buying opportunities. However, the good news for the entire industry is that the prices are rising. It is bound to generate growth that will bring better opportunities with it.