Top-Tier Commercial Property Markets Lead Hotel Sales Rebound
Bloomberg reports: In a recent in-depth article on the hotel sector, Bloomberg News stated that while a lodging recovery is underway in leading metros such as New York and Los Angeles, less visible markets are still stagnant and full of distressed assets.
As occupancy rates in major cities have come off their lows on account of business and international travelers, hotels outside of these metros have struggled to fill rooms as macroeconomic troubles have forced many to cut back on discretionary spending. This has also allowed hotel operators to raise nightly rates at popular destinations, but forced others to maintain discounts and incentives at secondary locations.
This coverage of the hotel sector was supported by Real Capital Analytics' Ben Thypin, who stated that, “Secondary and tertiary markets are much more linked to consumer spending and business travel, whereas primary ones get international, leisure and business travel.” The bifurcation between leading and secondary markets, first brought to light by Real Capital Analytics' US Capital Trends publication in December 2009, has only become more apparent over 2010.
View the full article on Bloomberg: Top-Tier Commercial Property Markets Lead Hotel Sales Rebound
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Posted by: Nina Turner