- Florida hotel investment reached $7.2 billion over the latest four quarters, more than a fifth of U.S. volume, at $227,000 per room versus $137,000 nationally.
- Full-service sales jumped 193% to $5.1 billion, and limited-service volume rose 47%, outpacing the 6% national gain for that segment.
- Lenders say hotel maturities are manageable but costlier, with some underwriting at 8%, while franchise fees and operating costs squeeze NOI.
Florida captured over one-fifth of national hotel sales volume across the past four quarters, with Florida hotel deals totaling $7.2 billion, The Real Deal reported.
HVS’s John Lancet presented the numbers, drawn from MSCI Real Capital Analytics, at Kabani Group’s Hotel Investment Forum in Miami.
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A Premium Market
At $227,000 a room, Florida’s average sale price ran roughly 65% above the national $137,000. Its cap rate averaged 8%, versus 8.3% nationally.
The $7.2 billion included $4.4 billion of single-asset deals and $2.8 billion of portfolios, across 196 transactions and 23,176 rooms.
Full-Service Surges
Full-service volume jumped 193% to $5.1 billion, or 70% of the state total. That came from 46 deals covering 9,592 rooms, averaging $422,000 a room at a 7.3% cap rate.
Limited-service volume rose 47% to $2 billion, against 6% nationally. Those 150 deals priced at $143,000 per room with an 8.4% cap rate.
The National Picture
U.S. hotel sales rose 34% to $33 billion, with $26.6 billion in single-asset sales and $6.4 billion in portfolios. The market logged 2,034 transactions and 226,849 rooms at an 8.3% average cap rate.
Colliers’ Q3 data, which we covered in Colliers’ Q3 snapshot, showed quarter-end hotel cap rates at 8.5% and a 1,594-room Orlando portfolio trading for $1.3 billion.
Debt Is Costlier, Not Catastrophic
Lenders on a panel argued the maturity wave could prove milder than headlines imply. They put hotel loans due by year-end at $20 billion and $88 billion through December 2027, and said many have already been extended or worked out.
The Mortgage Bankers Association expects $875 billion of commercial and multifamily debt to mature this year.
One lender is underwriting hotels at an 8% rate. Owners are adding equity, mezzanine debt, preferred equity or C-PACE, and lenders urged them to start early and stop counting on rate cuts.
Miami Beach: Buyers and Distress
European buyers are active. Dutch firm Corendon Hotels & Resorts paid $50 million for two Collins Avenue hotels, and a group tied to French investors purchased the Tony Hotel, 52 rooms, for $16.5 million.
The Tides and Goodtime hotels were both foreclosed on and handed back to lenders in 2026.
Why It Matters
Operating costs are the squeeze. One panelist pointed to a survey where 82.5% of respondents saw NOI decline and franchise-related costs climbed 18% to 20%.
Panelists said raising room rates is getting harder to rely on, with labor, insurance and taxes up over five years.
What’s Next
Panelists told owners to know their numbers, keep several exit strategies and review insurance coverage and tax assessments.
