Hospitality has been hit as hard as any CRE sector from COVID. In the wake of travel bans, the cancelation of business conferences and the economic downturn, hotels have sat empty.
As vacancies have risen, trades in the hotel sector plummeted. Real Capital Analytics says transaction volume in the sector fell by more than two-thirds compared with 2019, which was the lowest level since 2009.
But not all hotels saw the same declines. In a new post RCA reports that the sales market fell only 22% for economy branded hotels, which showed a clear investor preference. Surprisingly, the only CRE sector that performed better was industrial.
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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.
