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.
Panelists discuss government assistance and the repositioning of assets.
Panelists discuss potential property tax issues following the COVID-19 pandemic.
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.
In the wake of the collapse in travel because of COVID-19, many hard-hit hotel properties have been pushed to the point of bankruptcy. Instead of losing properties to foreclosure, we have seen an increase in receiverships, a financial tool that can help businesses avoid bankruptcy and perhaps recover.
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.
It’s no secret that in the age of social distancing and travel bans, the hospitality industry is hurting, but real estate industry professionals are seeing long-term potential, especially in New York City.
Hotel owners and financiers are confronting the phase-out of a longstanding interest rate benchmark as they address the impact the pandemic has had on borrowers’ ability to repay loans.
After a dour 2020, the pace of deals in the U.S. hotel industry is expected to pick up this year, even if it doesn’t quite reach the record levels set in 2019.
New York City has been especially impacted by the COVID-19 crisis, with distress already appearing across several asset types, including hospitality and retail. While some deals have been made in the last couple of months, there is still a significant amount of dry powder waiting in the wings, ready to be invested when the right opportunities arrive.