Suzanne Mellen, senior managing director and practice leader at HVS, has been in the hotel valuation business for 40 years. She’s witnessed a lot of ups and downs.
She’s also noticed how investors are eager to talk about their hotel’s market value during the good times but reluctant to face the truth in a downturn.
Mellen and her colleagues recently released a report that shows a decrease in hotel market values across the U.S.
No surprise there, given the negative impact of the COVID-19 crisis on industry performance. But this is also a time when opportunistic buyers will step up and actually aid in the industry’s post-crisis recovery.
Lodging Leaders talks to Mellen and others regarding who the winners and losers may be in hotel investment as the crisis begins to ease. This episode is part of our ongoing special coverage of the coronavirus crisis and its impact on the hospitality industry.
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Hotel appraisers and brokers expect distressed assets to come to market as the pandemic recession continues into 2021. Analysts say billions of dollars in private equity are waiting in the wings to acquire hotels underperforming as a result of the coronavirus crisis. But pricing will be different than in previous economic downturns. While a transaction may be distressed, it will not necessarily reflect distress pricing,” said Daniel Lesser of LW Hospitality Advisors. Long Live Lodging explores the state of hotel values as well as what may lie ahead with regard to transactions in 2021 as the spread of COVID-19 continues to stifle lodging performance. This report is part of our ongoing coverage of the coronavirus crisis and its impact on the hospitality industry.
Global business travel is a $1.4 trillion industry. The Global Business Travel Association calculates the coronavirus pandemic in 2020 resulted in a loss of $113 billion in business travel spend in hotels, airlines and other sectors of the travel industry. But all is not lost. GBTA, industry analysts and travel management companies see some green shoots of hope for 2021 as the COVID-19 vaccine rolls out and corporations put some of their people on the road again. This report is part of Long Live Lodging’s ongoing coverage of the coronavirus crisis and its impact on the hospitality industry.