While some commercial real estate sectors have thawed since the onset of the pandemic, added restrictions and subsequent COVID outbreaks have prevented hospitality from beginning its recovery period. Despite the disproportionate wallop, all is not lost for hotels.
The overall hotel occupancy rate climbed to 43% in the third quarter from a low of 38% in the second quarter, according to Moody's Analytics REIS. In fact, most metros had slight improvements in occupancy rates, room rates and RevPAR in the third quarter.
This, along with investors seeking hotel opportunities that offer price reductions from pre-pandemic values, are indications that the hotel industry is inching its way back. One joint venture in particular has plans to acquire $300 million in US hospitality assets within the next 18 months.
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- 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
*May exclude premium content© 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.
Lisa Brown
Lisa Brown is an editor for the south and west regions of GlobeSt.com. She has 25-plus years of real estate experience, with a regional PR role at Grubb & Ellis and a national communications position at MMI. Brown also spent 10 years as executive director at NAIOP San Francisco Bay Area chapter, where she led the organization to achieving its first national award honors and recognition on Capitol Hill. She has written extensively on commercial real estate topics and edited numerous pieces on the subject.
