Q2 2020 Real Estate Indices: Are All Crises the Same?

Professor Crocker Liu and co-authors released their second quarter real estate indices report, where they show that the current crisis is much worse than the Great Recession in terms of risk and the loss of relative wealth.

Although the Great Recession is useful in offering insights into how hotel performance might fare during a crisis, we show that the current crisis is much worse in terms of risk and the loss of relative wealth. Not surprisingly while the price of hotels in all regions continue to exhibit negative price momentum, hotels in the Middle Atlantic and New England regions were particularly hard hit.