U.S. Urban Market Opportunity There may not be a better time to buy a hotel in a large, high-barrier market. Lenders and other capital stack participants (think EB5 investors) are becoming increasingly impatient as the recovery in the largest U.S. hotel markets crawls toward pre-pandemic RevPAR levels. According to a CBRE report, at the end…
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I recently returned from the ALIS (Americas Lodging Investment Summit) conference in Los Angeles. It felt a little like falling down the rabbit hole. It felt strange (but energizing) to be around so many people again. While I expected to see despairing looks after more than a year of jaw-dropping RevPAR’s, ongoing forbearance discussions (and…
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In the month of May, leisure demand was roughly 120% of its pre-pandemic level, and with an estimated 75% of households planning a vacation this Summer, it appears this trend will continue at least in the short term. The STR chart below communicates the room revenue story eloquently. By using 2019 as a base of…
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Hotel financial performance is directly tied to fundamentals within the property’s local market. Below is a quick snapshot of how hotel fundamentals have been impacted over the past six months due to COVID- 19. Hotel Demand: Never Have I Ever The word “unprecedented” is being used repetitively to describe the post-quarantine world due to COVID.…
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Brave enough to buy a hotel during a pandemic? The shocking decrease in demand created by Covid-19 crippled balance sheets and sidelined many of the traditional hotel buyers such as hotel REITs, current owners, and Private Equity groups. As liquidity pressure mounts on current owners, quality hotel opportunities are certainly going to come on the…
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Boutique hotel supply and demand is growing at a much faster clip than traditional branded hotels. According to the Highland Group 2019 Boutique Hotel Study, demand for boutique hotels grew at a year-over-year rate of more than 8 percent, while overall US hotel demand grew a mere 2 percent in 2018.
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