Overall, Cape Cod will continue to offer many of the features sought by guests to bed and breakfast inns, and innkeepers will continue to provide these guests with an alternative lodging experience. However, with increased competition from private home rentals, innkeepers will need to be creative in order to maintain overall RevPAR and profitability levels.
Despite the plethora of bad news there are also several reasons for optimism.
Downturn lesson number one is that lodging sector sponsors should, if necessary, be ready, willing and able to have the wherewithal to invest for the long term, as anything less is akin to playing with fire.
Hotel owners who perceive the pandemic will automatically result in a decline to property tax burdens need to think twice.
Although the lodging industry has traditionally committed to cleanliness and safety, the fact is that sanitary issues at many types of lodging facilities have been a challenge for a long time.
The onset of the COVID-19 pandemic earlier this year has for the most part resulted in a reset in lodging property values.
Long term opportunistic investors that bet big, at the right basis, and early in the cycle will likely reap tremendous financial rewards.
COVID-19 will eventually pass to the point when we can once again meet in person. While virtual connectivity will continue to be a widely used tool for many, the notion of technology resulting in the demise of travel to meet in person currently remains farfetched.
The manufactured terminology and theory of BEA/TAB is a foreign concept to well-informed market participants within the lodging real estate investment arena.
Real property is in a constant state of flux and change, affecting individual assets, neighborhoods and cities. Economic, environmental, government and social forces affect all markets, particularly real estate. Highest and best use often is identified as the key concept supporting real estate use and value decisions.