After a rapid rebound in U.S. economic growth during Q2 2021, news of the fast-spreading Delta coronavirus variant over the past several weeks has created a cloudier outlook. Today, there are two perspectives from which to dissect the near-term future, namely glass half empty or glass half full.
Successful hotel receivers are proficient in operating lodging businesses, preserving value and protecting assets that are subject(s) of a legal dispute and provide transparency in situations where the parties are not able to entirely trust each other.
The U.S. Lodging Industry has shifted dramatically over the past twelve months. Looking back to this time last year, the world was fiercely battling the Coronavirus pandemic, virtually weaponless without anything other than masks and social distancing measures.
Demand drivers are anticipated to change during the second half of this year as post Labor Day corporate travel should increase, and with schools reopening leisure travel will slow down.
During the first half of 2021, there have been four single asset hotel sales in the United States recorded with a per room transaction amount greater than US$1 million dollars, two of which were for more than US$2 million per key.
Historically, New York City (NYC) has enjoyed a strong and diverse volume of demand from the corporate, group and leisure sectors, which has driven its realization of the highest occupancy, average daily rate (ADR) and RevPAR levels within the United States.
The spring season of 2021 has sparked optimism in the overall economy and hospitality industry as compared to this time last year.
While the AHLA’s “Safe Stay” initiative represented a new level of focus on transient lodging facility sanitation, there is no universally accepted way to clean a hotel guest room and there apparently remains no shortage of hotels that continue to fail to meet the challenge of cleanliness.
While the post-COVID-19 environment may meaningfully reduce demand for commercial real estate including hotels, past downturns no matter how painful, have always been followed by recoveries during which new highs were achieved for both rental rates as well as property valuations.
There can be only one market value, and the method employed to determine such must be the same under any circumstance, including property tax appeals.