Continental Contractors Inc’s Post

More #hotel deals should be possible as the #CMBS market opens up and #investors have more clarity in terms of pricing. https://bit.ly/4ciMzDN #hoteltransactions #hotelinvestment #hoteldeals #debtmarket

More #hotel deals should be possible as the #CMBS market opens up and #investors have more clarity in terms of pricing. https://bit.ly/4ciMzDN #hoteltransactions #hotelinvestment #hoteldeals #debtmarket

"High interest rates and a persistent bid-ask gap have kept hotel investors from closing as many deals in the first half of 2024 as they would have liked, but experts say conditions are improving to the point where the transactions market is likely to pick up in the second half of the year." #hotels #hotelsandresorts #hotelindustry #hospitality #hoteliers #dshhoteladvisors https://lnkd.in/eE-myAYH

#ICYMI last week Director Matthew Neal was featured in EG with his column on operational real estate. In it, he discusses why a forensic approach to operational real estate is vital in order to truly see the problems before they emerge, and derive best value. #READ the piece in EG here: https://lnkd.in/d4jsn7sj #READ the full piece on our website here: https://lnkd.in/dzixKUeq #property #propertyuk #operationalrealestate #assetmanagement #alternatives #livingsector #operationalproperty #operationaloversight #addedvalue #operatingcost #problemsolving #PBSA #BTR #Hotels #forensicapproach #competitiveadvantage

#ICYMI last week Director Matthew Neal was featured in EG with his column on operational real estate. In it, he discusses why a forensic approach to operational real estate is vital in order to truly see the problems before they emerge, and derive best value. #READ the piece in EG here: https://lnkd.in/d4jsn7sj #READ the full piece on our website here: https://lnkd.in/dzixKUeq #property #propertyuk #operationalrealestate #assetmanagement #alternatives #livingsector #operationalproperty #operationaloversight #addedvalue #operatingcost #problemsolving #PBSA #BTR #Hotels #forensicapproach #competitiveadvantage

Want to know what is happening in hotel investments? My latest article for GlobeSt.com should shed some light on that. The U.S. hotel market exhibits a mix of resilience and emerging challenges: - Economic Context: Despite a robust U.S. economy fueling consumer spending and travel, inflation concerns persist with the Federal Reserve likely keeping interest rates elevated in the near term. - Market Dynamics: Q1 2024 saw a downturn in hotel investment volumes compared to previous quarters, with a significant 23% drop in the number of trades and an 18% decrease in total dollar volume from Q4 2023. Sales Highlights: - Price Fluctuations: Average sale price per room rose by 5% quarter-over-quarter, yet fell by 18% year-over-year. - Geographic Concentration: Florida, New York, California, and Arizona accounted for 39% of the national quarter total, highlighting regional hotspots. - Noteworthy Transactions: The sale of the Arizona Biltmore for $1 million per unit marked a standout deal, reflecting institutional investors durable interest in trophy assets . Forward Outlook: The market is set for increased transaction activity as sellers adjust to market realities and bid/ask spreads narrow. The U.S. hotel industry remains a favored asset class, though it faces headwinds from rising operating costs and global economic pressures. Keep an eye on urban markets like Boston and New York, which are nearing pre-pandemic performance levels, and potential shifts in investment strategies towards redevelopment for affordable housing. Read the article here: https://lnkd.in/edfd2q8e? #hotelindustry #hotelinvestments

Buying and selling are increasing, which is looking positive for REITs. We could see a pick up in pace for hotel investing, particularly moving into the latter half of 2024. Optimism is becoming abundant as the industry is showing its resilience and promising future. #HospitailtyIndustry #HotelInvesting

🌴 South Florida's hotel transaction volume has in Q1 of 2024, when compared to Q1 of 2023. Factors such as reduced occupancy rates, new hotel supply, and tighter lending criteria has constrained investment activity within the hospitality sector. 🏨 While hotel owners feel financial strain from brand-mandated renovations (PIP's), rising costs, and uncertain interest rates, buyers are feeling the pressure from lenders as access to capital becomes more challenging. Will buyers and sellers become more engaged and lead to a rebound in deal volume throughout the remainder of the 2024? Follow us for continued access to market data! 📊 #HospitalityCRE #CREBrokers #ZYXCapital

Key takeaways from the Lodging Industry Investment Council survey: 1. Most respondents expect transaction volume to rise this year, but few expect it to increase more than 10%. So much for the year transaction volume roared back. 2. A total of 63% of investors prefer upper-upscale and upscale assets, while 78% expect extended-stay and upscale select-service development to lead the way in the next two years. It's clear the winds in the hotel investment space have shifted toward these specific products. 3. Nearly two-thirds of investors believe corporate will fully recover (!!) to pre-pandemic levels and three-quarters believe group demand will see the fastest RevPAR growth this year. Both trends match what we are seeing on the ground in Partners Hospitality Fund I. Bottom line: the market is still dislocated. Short- and medium-term fundamentals for hospitality look good, but multiple factors are making transactions tough to come by. Groups like Partners Capital who are able to come to terms with buyers on realistic pricing, secure debt, and offer certainty of closing will have a head start on the rest of the pack when transactions finally return. And a head start now means greater, more consistent returns over the long-run. Reach out to our team today to learn more. #partnerscapital #hospitality #hotelinvestment