HOSPITALITY
WHAT IS THE FUTURE OF HOSPITALITY?
Despite an overall decline in U.S. hotel occupancy during the last few years, there has been a recent surge, both locally and from abroad, of travelers starting to return.
Room demand, a measure of sales and revenue, for central business districts has been above 90% of the comparable 2019 levels. The ADR (or Average Daily Rate) in central business districts was $229 on the weekend, the highest level since 2020, and $162 for the weekdays, second-best.
MARKET CONDITIONS
Is there still opportunity in hospitality? Even with the last few years of significantly reduced occupancy levles and other restrictions, well-positioned hotels and resorts have been able to pull through and are now seeing an increase in demand and market share.
There are owner operators of mid- and top-tier resort and hotels brands that are looking to privately disposition their holdings for operating capital or liquidity. This presents an excellent entry for experienced and new entrants to the hospitality industry
STRATEGIC ADVANTAGES
Currently, hospitality presents challenges for the immediate future but there is a notable shift as more travelers, both leisure and business, begin to seek accommodations throughout regional and metropolitan locations. Coastal areas and MSAs continue to see an increase in daily occupancy and ADR.
- Acquisition opportunities at attractive levels
- Increased demand and market share
- Rise in occupancy and average daily rates
EXPLORE NEW OPPORTUNITIES
Contact us for more information on available hotel and resort opportunities. Whether you are looking to acquire or disposition current assets, we are interested in speaking with you!