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.
The transaction market is expected to be brisk in the first half of the year. Where are the opportunities, what types of hotels are going to be changing hands, what will the bid/ask price look like and is now the time to hold or sell?
The lodging sector continues to introduce an endless array of categories and choices resulting in overwhelming consumer bewilderment, and the simple fact is there are too many hotel brands.
As we all try to plan and learn about 2021, Sam-Erik Ruttmann and Abid Butt are delighted to organize a discussion around “Plausible Predictions – 2021” featuring Daniel Lesser – President & CEO, LW Hospitality Advisors.
This episode of the Lodging Leaders podcast explores the state of hotel values and what may lie ahead for sellers and opportunistic investors.
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.