Markets that may be hit the hardest are Boston, Dallas, Honolulu, Los Angeles, Miami, Phoenix and Seattle.
Until the turnaround occurs, occupancies at full-service hotels will average 63.5% and at limited-service properties, 60.9%, the lowest levels since the 1991 Gulf War. The industry generally considers 65% occupancy as the break-even point at most properties.
"Hotels are currently being hit with a one-two punch," Dr. Jack Corgel, managing director of applied research at HRG, says in a prepared statement. "In addition to the current recession, the hotel market is enduring a stigma brought about by the current fear of travel."
Continue Reading for Free
Register and gain access to:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
