Skip to content

Search

Latest Stories

HVS: Four factors will bring U.S. hotel transactions back to normal

They include available financing and concessions from franchisers

THE QUESTION ON the mind of many hoteliers struggling under the COVID-19 pandemic is “When will things get back to normal?” Global consulting firm HVS has laid out four objectives that must be achieved before hotel transactions can reach that point.

HVS is expecting a serious drop in individual U.S. property transactions in the second quarter due to the ongoing pandemic. The first quarter has already seen a 61.4 percent drop from the same period in 2019, according Real Capital Analytics data cited in an article by Drew Noecker, managing director and co-head for HVS’s brokerage and advisory division.


“We believe that industry participants will need clear ideas on several key topics to be comfortable transacting,” Noecker said.  “Answers to these industry questions would be expected within the next few months, as more about the COVID-19 pandemic duration is understood.”

Noecker lists four key factors which will bring normalcy back to U.S. hotel transactions:

Availability of financing

There are multiple transitional, or bridge, lenders with which HVS is currently working. However, to return to a healthy market, the CMBS market, SBA lenders, and traditional balance-sheet lenders need to return to lending.

Understanding volatility

HVS is working with many companies who have “paused” hotel lending until a clearer RevPAR trajectory emerges. When lenders feel comfortable with a specific uptrend, the traditional debt market will reopen.

Return of PE firms

One of the significant drivers of the growth in hotel transactions over the last eight years was the entry of traditional real estate private equity firms into the hotel ownership space. Those firms are currently concerned about the occupancy volatility of hotels during this health issue, but once the broader real estate private equity firms are again comfortable, the transaction market will improve.

Concessions from franchisers

Major franchise companies such as Marriott International, Hilton, Hyatt Hotels & Resorts, Choice Hotels International, and InterContinental Hotels Group have discussed possible concessions for their franchisees. Once these concessions regarding fees and renovations are understood, owners can safely bid on available assets and return the market to a healthier state, concludes HVS.

Previously, HVS forecast that the pandemic’s impact on the U.S. hotel industry could lead to a multi-billion dollar loss of lodging tax revenue.

More for you

Olympic Wage ordinance 2028
Photo credit: Unite Here Local 11

Petition fails to stop L.A. hotels wage increase

Summary:

  • Failed petition clears way for Los Angeles “Olympic Wage” to reach $30 by 2028.
  • L.A. Alliance referendum fell 9,000 signatures short.
  • AAHOA calls ruling a setback for hotel owners.

A PETITION FOR a referendum on Los Angeles’s proposed “Olympic Wage” ordinance, requiring a $30 minimum wage for hospitality workers by the 2028 Olympic Games, lacked sufficient signatures, according to the Los Angeles County Registrar. The ordinance will take effect, raising hotel worker wages from the current $22.50 to $25 next year, $27.50 in 2027 and $30 in 2028.

Keep ReadingShow less
Hotel data challenges report highlighting AI and automation opportunities in hospitality

Survey: Data gaps hinder hotel growth

Summary:

  • Fragmented systems, poor integration limit hotels’ data access, according to a survey.
  • Most hotel professionals use data daily but struggle to access it for revenue and operations.
  • AI and automation could provide dynamic pricing, personalization and efficiency.

FRAGMENTED SYSTEMS, INACCURATE information and limited integration remain barriers to hotels seeking better data access to improve guest experiences and revenue, according to a newly released survey. Although most hotel professionals use data daily, the survey found 49 percent struggle to access what they need for revenue and operational decisions.

Keep ReadingShow less
Hyatt Way partnership

Hyatt taps Way for unified guest platform

Summary:

  • Hyatt partners with Way to unify guest experiences on one platform.
  • Members can earn and redeem points on experiences booked through Hyatt websites.
  • Way’s technology supports translation, payments and data insights for Hyatt.

HYATT HOTELS CORP. is working with Austin-based startup Way to consolidate ancillary services, loyalty experiences and on-property programming on one platform across its global portfolio. The collaboration integrates Way’s system into Hyatt.com, the World of Hyatt app, property websites and FIND Experiences to create a centralized booking platform.

Keep ReadingShow less
Report: CMBS delinquency rate hits 7.23 percent in July

Report: CMBS delinquency rate hits 7.23 percent in July

Summary:

  • U.S. CMBS delinquency rate rose 10 bps to 7.23 percent in July.
  • Multifamily was the only property type to increase, reaching 6.15 percent.
  • Office remained above 11 percent, while lodging and retail fell.

THE U.S. COMMERCIAL mortgage-backed securities delinquency rate rose for the fifth consecutive month in July, climbing 10 basis points to 7.23 percent, according to Trepp. The delinquent balance reached $43.3 billion, up from $42.3 billion in June.

Keep ReadingShow less
Global Hotel Rates to Stay Stable in 2026

Report: Global hotel rates steady despite uncertainty

Summary:

  • Global hotel rates are expected to remain stable through 2026, according to AMEX GBT.
  • New York is a key business travel and meetings destination.
  • India is likely to be a focus for travel programs during 2026 negotiations.

GLOBAL HOTEL RATES are expected to remain stable through 2026, as geopolitical tensions and potential U.S. tariffs limit demand and constrain price increases, according to American Express Global Business Travel. New York remains a popular destination for business travel and meetings.

AMEX GBT’s Hotel Monitor 2026, an annual forecast of global hotel rates in business travel destinations, identified India as a key market, with hotel rates and occupancy set to rise.

Keep ReadingShow less