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Hotel Industry Edges Closer to Seller's Market

PHOENIX-There is pent-up money and some portfolio trimming. Still, don't look for heavy trading because many owners are refinancing instead of selling in a down market. It will get better by 2004, say those in the know at the 2002 Lodging Conference.

By Beverly Ford | Updated on October 04, 2002

PHOENIX-New hotel construction has dropped by almost 30% and the sale of existing hotels have dipped to its lowest level in more than 12 years, but that trend may be on the verge of reversing as a shaky economy begins to level off.

“It’s not quite a seller’s market yet,” Patrick Ford, president of Lodging Econometrics, the research division of National Hotel Realty, tells GlobeSt.com. “But there’s pent-up money waiting to be put to work and we’re seeing companies starting to prune their portfolios so that’s an improvement.”

But don’t expect a heavy influx of hotel trading anytime soon. Ford predicts there won’t be much change in the industry in the next year, but it should show signs of dramatic improvement by 2004.

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