[quote=phaster]
…Commercial real estate broker Adrian Glover has consulted on hotel transactions for decades, representing buyers and sellers. He said the city paid too much for the two Residence Inn properties.

“Hotels are worth probably 30 percent to 40 percent less than they were a year ago because of COVID-19,” he said. “This should have come out in the due-diligence period” of the escrow process.

Based on capitalization rates reflected in the CBRE appraisals — the measure of annual returns on investment — the city will lose about $866,000 a year in hotel taxes, plus $100,000 or more in annual income for the tourism marketing district.[/quote]

Yep, the city should stop buying RE – they are f*** terrible at it.
I looked up the prices as the Marriott Mission Valley was up for sale a while back. It was $242k/key in April 2019. Who pays more for a Residence Inn, only politicians do.
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