In a review of hotel transactions for the first six months of the year, hotel industry experts say that the cost of capital and sellers holding out for a higher price while would-be buyers seek a better deal are slowing the pace, but there's potential for a turnaround.
With Current Uncertainty, Lenders Want a Solid Story
A majority of Lodging Industry Investment Council members said they expect full-year lodging real estate transactions in 2023 to exceed the volume in 2022.
Investors believe long-term growth trends will outweigh near-term capital markets headwinds
Commercial real estate financing, particularly related to the hospitality industry, has been in a state of flux as the pendulum of the economy swings towards a correction. This article describes the state of the current hotel lending environment in the U.S.
Industry Recovery, Buyer Competition Drive Hotel Pricing in First Half of 2022
Hotel Execs at Hunter Hotel Investment Conference Convinced Industry Will Overcome Headwinds
Well-funded competition for hotel deals and other factors have affected hotel valuations, according to a panel of owners and advisers at the Americas Lodging Investment Summit.
Hotel industry and lending experts said the pace of the U.S. hotel industry recovery has attracted pent-up capital, creating the potential for a lot of deals and a lot of competition for them.
In a busy quarter for buying and selling hotels, executives with hotel real estate investment trusts commented on why there's more activity in the transactions market during recent earnings calls.