Hotel deals struck during the pandemic will likely outperform earlier transactions based on historical data from the Great Recession.
Private funds with exposure to hotel properties formed in the years following the Global Financial Crisis yielded higher net IRRs than previous vintage years due to lower valuations, Jared Bochner writes in a Preqin blog post.
So far, transactions in the hotel sector have been few and far between due to many factors, including, not surprisingly, the effects of the pandemic as well as a relative lack of distress in the market. As in other CRE sectors, lenders have been working with borrowers on forbearance. While the number of delinquent hotel loans is high, the damage could have been worse.
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.
Leslie Shaver
Les Shaver has been covering commercial and residential real estate for almost 20 years. His work has appeared in Multifamily Executive, Builder, units, Arlington Magazine in addition to GlobeSt.com and Real Estate Forum.
