Erik Ransdell’s Post

Hospitality in Real Estate In hospitality real estate—whether motels, hotels, or cottages—having strong backup plans and a focus on brand building is crucial. The industry is heavily regulated, and changes in rules or market dynamics can quickly impact operations. Check out the new Episode! https://lnkd.in/gpsKc_mf #realestateinvestors #hospitality #realestate #property #propertyinvestment #propertymanager #realestateinvesting #financing

Hotels remain a smart investment in the current financial climate, especially when compared to other commercial real estate options. As the year progresses, we expect to see increased hotel transaction activity, driven by two key factors. Firstly, there is a significant amount of hotel debt maturing over the next two years, with about $15 billion in hotel CMBS loans alone coming due. Secondly, many properties are facing impending property improvement plans or other capital needs, which cannot be deferred any longer. Major brands are anxious to resume the regular schedule of property improvements that help keep properties competitive in a given market. Distilling the post-pandemic marketplace, the greatest opportunity is either through refinancing an existing loan or through the recapitalization and subsequent renovation or repositioning of a buy-sell transaction. Either way, the debt markets hold the keys to both executions. Additionally, supply chain constraints and construction costs, along with the availability of skilled labor, in many cases favor “buy and upgrade” over new construction. #propertysquarellc #FranckRobert #hotelforsale #hotelinvestment #rivieramaya #mexico #caribbean #centralamerica #RealEstate Source: https://lnkd.in/ertRBvnn

Hotels remain a smart investment in the current financial climate, especially when compared to other commercial real estate options. As the year progresses, we expect to see increased hotel transaction activity, driven by two key factors. Firstly, there is a significant amount of hotel debt maturing over the next two years, with about $15 billion in hotel CMBS loans alone coming due. Secondly, many properties are facing impending property improvement plans or other capital needs, which cannot be deferred any longer. Major brands are anxious to resume the regular schedule of property improvements that help keep properties competitive in a given market. Distilling the post-pandemic marketplace, the greatest opportunity is either through refinancing an existing loan or through the recapitalization and subsequent renovation or repositioning of a buy-sell transaction. Either way, the debt markets hold the keys to both executions. Additionally, supply chain constraints and construction costs, along with the availability of skilled labor, in many cases favor “buy and upgrade” over new construction. #propertysquarellc #FranckRobert #hotelforsale #hotelinvestment #rivieramaya #mexico #caribbean #centralamerica #RealEstate Source: https://lnkd.in/e39jV-3F

Last year, many hospitality deals fell through, with only about 10% of marketed deals closing, as sellers opportunistically tested market valuations. This year, the sentiment and overall motivation is shifting - hotel investors anticipate more deal opportunities in 2024, driven by capital requirements for loan maturities and renovations. Further insights into the emerging factors propelling market activity and fostering a positive outlook are detailed below. #hospitalitynews #investmentactivity #commercialrealestate #CRE

"RevPAR and ADR trends are shaping the future of the hospitality industry." 📈🏨 Discover the key insights in our latest newsletter, including national trends, regional insights, and an in-depth look at California's market. Read more for valuable strategic advice. #HospitalityRealEstate #RevPAR #ADR #HotelIndustry #RealEstateTrends #StrandsHospitality #MarketAnalysis #HotelInvesting #TravelEconomics #HotelManagement #BusinessTravel #SustainableTravel #TravelRecovery #RealEstateInvestment #HotelDevelopment

For dealmakers it’s a year of the haves vs the have not during the NYU IHIIC. Brad Rahinsky, President & CEO, Hotel Equities, shares why some developers get deals done while others are struggling. #hotels #hotelfinance #hoteldeals #hotelpodcast

🔔 Investors assume moderate LTV ratios ⭐ According to Cushman & Wakefield’s 2024 Hotel Investor Compass, nearly half of the surveyed investors use a 50-55% LTV when underwriting new deals, a significantly larger proportion than in 2022 (27% of investors). ⭐Compared to 2022, a smaller share of investors assume all-equity deal structure in their underwriting (3% of investors compared to 11% in 2022). ⭐On the other hand, there has been a decrease in the share of investors assuming LTV ratios exceeding 55% (33% in 2024 vs 51% in 2022), indicating constrained access to financing. These findings are based on surveying 60 leading hotel investors, including senior representatives of major private equity firms, funds, REITs and other institutional investors. For more information and summary of the key findings visit our website: https://cushwk.co/3PYQpJz Subscribe now to receive tailored updates and expert analysis delivered directly to your inbox: https://lnkd.in/ebPWfeEJ 👈 For further information and support with your hotel real estate in Europe, contact our experts Borivoj Vokrinek, Jonathan Hubbard, Le Fichoux Frederic, Ed Fitch, Katell Bourgeois , Bruno Hallé Boix, Albert Grau - MRICS, Gonçalo Garcia, Alessandro Belli, David Nath MRICS, Josef Filser or contact us at HospitalityEMEA@CushWake.com  #CWHospitality #CWHotelInvestorCompass #HotelInvestment #HotelRealEstate #Hotels

#CREF advisory board members Ben Rowe, Founder and Managing Partner of KHP Capital Partners, and Richard Stockton, President and CEO of Braemar Hotels & Resorts (BHR), discussed the impact of capital market shifts on hotel deals during the Americas Lodging Investment panel. Stockton noted a slowdown in deals last year, with only about 10% of marketed deals closing, largely due to opportunistic sellers holding out for higher valuations. However, he expects more deals this year as sellers become more realistic. Rowe highlighted a shift in focus towards distressed assets in leisure markets, where the cost of capital has affected valuations, making entry points more attractive. Both emphasized the importance of strategic investments and transformative renovations to create value in today's market. #KHPcapitalpartners #BraemarHotelsandResorts #CapitalMarkets #RealEstateInvesting Click here to read more: https://lnkd.in/eMYe_VEG

🔔 ESG impacts hotel transactions ⭐ According to Cushman & Wakefield’s 2024 Hotel Investor Compass, nearly 80% of investors have already encountered ESG-related issues during hotel acquisitions or dispositions (+16pp vs. 2022). ⭐ 64% of the surveyed investors experienced monetary impacts due to ESG-related issues, with the largest share of investors (38%) encountering major monetary impacts (>€500K). ⭐ The share of investors who never experienced ESG-related issues during transaction DD in the last two years declined from 36% in 2022 to 21% in 2024. These findings are based on surveying 60 leading hotel investors, including senior representatives of major private equity firms, funds, REITs and other institutional investors. For more information and summary of the key findings visit our website: https://cushwk.co/3PYQpJz 👈 Subscribe now to receive tailored updates and expert analysis delivered directly to your inbox: https://lnkd.in/ebPWfeEJ 📑 For further information and support with your hotel real estate in Europe, contact our experts Le Fichoux Frederic, Katell Bourgeois, Ed Fitch, Borivoj Vokrinek , Alessandro Belli, Jonathan Hubbard, Bruno Hallé Boix, Albert Grau - MRICS, Gonçalo Garcia, David Nath MRICS, Josef Filser, or contact us at HospitalityEMEA@CushWake.com #CWHospitality #CWHotelInvestorCompass #HotelInvestment #HotelRealEstate #Hotels

Just finished reading this insightful piece on long income market dynamics, with a spotlight on the hotel sector. It's fascinating to see how the industry is positioned for growth in 2024 and beyond, despite recent challenges. The analysis provides food for thought on why investors remain attracted to this resilient sector. Whether you're an industry veteran or just curious about real estate trends, this article is worth your time: https://lnkd.in/eVbDH2av #RealEstateInvestment #HotelSector