Thanks to the subprime fallout, a construction slowdown, the unsure economic situation and numerous multifamily conversions, roundtable participants like Barry Olson, managing director of Irving, TX-based Archon Capital, say that deal flow and financing have made it more difficult to get lodging deals done.
"It's going to be difficult to repeat the [deal volume] we did in the last three months," Olson said. "I anticipate the flow to be slower now. There won't be many large transactions, given the fact that private equity is probably gone for this year and you won't see big portfolio deals. There will be more off-transactions. I'm seeing a lot of deals that mortgage dealers are putting together."
With the economy and the lending and construction industries slowing, one of the biggest consequences that has befallen the lodging industry is the unpredictability of pricing, according to panelists. This, they say, has led to conservative underwriting.
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