Industry Update
External Article10 March 2021

Hotel Property Rebound Faces Years-Long Slog

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bloomberg.com external

Distressed hotel owners may need to wait until 2024 to see a full rebound.

Hospitality property values are forecast to see swift improvements after 2022 though a full rebound for all types of hotels is years away, according to real estate data firm CoStar Group Inc. The sector has a lot of ground to cover as valuations on hotels tied to defaulted or distressed loans securitized in commercial mortgage-backed securities fell more than 20% last year from origination appraisals.

"This time around, economy and midscale properties, as well as extended-stay hotels weathered the downturn better than luxury and full-service hotels," Xiaojing Li, managing director at CoStar Risk Analytics, said in an interview. "The opposite was true during the Great Financial Crisis, where the economy hotels performed worse."

Read the full article at BloomBerg.com

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