Search
 

Analysts Predict Orderly 2002 Hotel Market; Panic Selling Doubtful

NEW YORK CITY-Prices will fall but not plummet as owners heed analysts' predictions of a V-shaped economic recovery and resist the temptation abandon ship. Value investors, not vultures will dominate this year's hotel transactions.

By Glen Thompson | Updated on February 08, 2002

NEW YORK CITY-New research from lodging investment services group Jones Lang LaSalle Hotels draws parallels between the current hotel market and that of the early 1990s. And while the data for 2002 suggests fewer lodging transactions, falling prices and decreasing cap rates, Jll sees an orderly transaction market this year dominated by value investors and little panic selling..

“Capital flows to real estate have been declining since their peak in 1998; however, they remain at high levels relative to historical standards,” says Alan Tantleff, executive vice president of Jones Lang LaSalle Hotels. “As an industry, we appear to be in much better shape today than we were in 1990, and while not a perfect parallel, 1990 was, in fact, the United States’ last recession. In 1990, we had weak fundamentals–high inflation, weak GDP growth, declining profit margins, and most importantly, negative outflows to real estate.”

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

NOT FOR REPRINT

© 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.

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2024 ALM Global, LLC. All Rights Reserved.