So, far pandemic-retail income problems haven't led to distressed sales in many commercial sectors.
Hotels have been the one exception to that trend, though. Eight percent of hotel sales involved a distressed asset between March of 2020 and February of 2021, according to Real Capital Analytics. This percentage takes on greater significance as there were very few hotel transactions in that timeframe, with only $10.6 billion traded, RCA says. By comparison, $36.6 billion traded in the prior 12-month period.
One recent example: Monarch Alternative Capital LP is purchasing the 400-room Crowne Plaza Orlando Universal Boulevard hotel in Orlando, Fla., through a Section 363 sales process as part of a Chapter 11 restructuring. The full-service, upscale hotel first opened in 2002 and generated consistent class flow, prior to the pandemic.
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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.
