World Panel
Viewpoint11 February 2020

2020 Hotel Transactions and RevPAR

Hotel Ownership, Development and Management

— 10 experts shared their view

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This viewpoint was created by
Demian Hodari, Associate Professor of Strategic Management at the Ecole Hôtelière Lausanne (EHL)
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Scott Woroch
Partner and Managing Director, Kadenwood Partners

There are a significant number of headwinds facing the global economy -- the latest being the Coronavirus/possibility of a global pandemic, and reduced travel levels; and "shaming" from air travel and its environmental impact, to name a few -- that I think will all exert downward pressure on RevPar. In the US there is the spectre of uncertainty over the US election. In Britain, the government must now face the reality of Brexit, and a real possibility of stagnating or reversing economic growth. And yet, hotels as an asset class have continued to gain traction, and become more mainstream for global investors. With the markets flush with liquidity, and with interest rates continuing at a very low levels, I think even with stagnating RevPar growth, hotels will continue to attract interest within the global investment community.

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