The coronavirus pandemic and the resulting downturn in the travel industry will make it difficult for investors to find the capital they need to acquire and develop hotels.
That means minority investors, in particular Black Americans, might face an uphill climb in qualifying for bank loans unless they can close the ever-widening equity gap.
Several industry groups, including owners, are looking post-pandemic and reviving efforts to partner with Black investors in hotel development, including partially financing new projects.
Industry leaders also want to educate minority owners of other commercial real estate assets how to reap financial returns through investment in hotels.
Last week, Lodging Leaders reported on Black hoteliers introducing boutique concepts that celebrate Black heritage and culture. This week, we explore the state of Black hotel investment and how the coronavirus pandemic has strengthened industry leaders’ resolve to invite more minority investment into hospitality.
We feature John Lancaster, new regional vice president of emerging markets at Choice Hotels International in Rockville, Maryland; Omari Head, director at Paramount Lodging Advisors, a hotel brokerage in Washington, D.C.; and Navroz Saju and Azim Saju of Hotel Development and Management Group, a family-owned business in Ocala, Florida.
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Extended-stay hotels are weathering the coronavirus crisis better than their transient cousins, according to reports. The Highland Group’s half-year report shows economy and mid-priced extended-stay hotels are faring better than upscale extended-stay accommodations. Second-quarter earnings reports from companies such as Extended Stay America prove the resiliency of the sector, especially when sales teams shift their focus to new prospects such as college students, leisure travelers who value the kitchen and essential workers in it for the long haul. Long Live Lodging examines what gives extended-stay its muscle in a weak economy. This report is part of our ongoing coverage of the coronavirus crisis and its impact on the hotel industry.
Almost overnight, the roadside motel is a hot commodity. Travelers are going by car and when they stop they want the safest stay possible. The coronavirus pandemic has pushed health and safety to the top of hotel guests’ most-favored-amenity list and exterior-corridor properties appear to provide more of a risk-free stay than their interior-corridor cousins. Long Live Lodging examines the new shine travelers have put on exterior-corridor motels during the COVID-19 crisis and how brands heavy with motel-style properties are responding to the trend. This report is part of Long Live Lodging’s ongoing coverage of the coronavirus crisis and its impact on the hotel industry.