Hoteliers Look Forward to a Full Recovery. But there are some clouds on the horizon.
By Paul Bergeron.
Hoteliers are poised for a full recovery from pandemic challenges with room rates within 3 percent of their all-time high and occupancy up 2,000 basis points from its pandemic lows, according to a report from Marcus & Millichap.
Accommodation employment, however, is 20 percent below prepandemic levels, and because hotels are struggling to service all rooms while being pressured by higher wages, they are left to hike room rates.
Desi Co, Managing Partner at Accord Group, tells GlobeSt.com that due to the pandemic, “many hotel owners have faced operational difficulties and a severe reduction in incoming capital that has made it nearly impossible for them to keep up with the necessary maintenance and active management that hotels require to be profitable.
“Even though the hotel industry is recovering, in some cases, there will not be ample time for hotel groups to be able to refinance existing debt or make the necessary capital improvements that have been neglected over the last couple years.
This will lead to distressed hotel sales hitting the market, he said.
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