Abstract
Key Highlights
The main event of the first half of 2026 was the entry of private equity into the Virginia Beach market, with Wheelock’s $349 million portfolio purchase (the Cavalier Resort properties). Notably, the Coastal Hospitality portfolio of eight hotels also traded (technically closing in early July) for $170 million. Together, these two deals, totaling over half a billion dollars, represent the first meaningful investment of out-of-state private equity in the Virginia Beach resort area, and we anticipate these trades will put the market on the map for future investment from PE shops. Additionally, the Sotherly REIT, which included 10 hotels (three in the Mid-Atlantic), was taken private. Collectively, these deals signal a broader shift: institutional capital is moving decisively into Mid-Atlantic hospitality.
