Excerpt from CoStar
Distressed Pricing on Hotels Yet To Be Seen
Unlike in years past when optimism among hotel executives was conservative, the first day of the Americas Lodging Investment Summit proved that leaders are all-out bullish on the health of the industry.
Hoteliers haven't been shy about their positive expectations for a high volume of deals, growth in revenues despite an economic recession and overall strength of travel demand.
In terms of price tags on hotels that could trade in 2023, past transactions indicate distressed pricing still won't occur. If an owner does decide to sell, experts say pricing will be more realistic.
“The short answer is ‘yes,’ but it definitely looks a bit different. It’s certainly a question I get asked as folks are trying to understand what corporate travel looks like. … We’ve found travel is the absolute lifeblood of our business, so we are committed to getting out there.”
— Danielle Bozarth, senior partner at McKinsey & Company, when asked if her company is increasing its travel budget in 2023.
“It’s really the Amazons, the PricewaterhouseCoopers, and the McKinseys — not to pick on them — that are not back, and it might be several years.”
— Remington Hotels CEO Sloan Dean, discussing how corporate travel has already returned for smaller companies.
"I do think that lodging has done better than other real estate sectors [in promoting diversity]. Having said that, I think there’s a lot of room to grow. This is a topic that’s near and dear for RLJ Lodging Trust; it’s embedded in our DNA. I think the real ingredient is being intentional about giving people an opportunity to lead in different levels. We can talk about it all we want but we need to give people the opportunity.”
— Leslie Hale, president and CEO, RLJ Lodging Trust, when asked what the hotel industry could be doing to further promote diversity and inclusion.
Click here to read complete article at CoStar.