Manhattan’s Hotel Sector Continues Investment Sales Drought
Manhattan’s hotel investment sales market didn’t have the best start to 2020, says Real Capital Analytics’ (RCA) Jim Costello. Simply put, there were no transactions, and there weren’t any in November and December of 2019, either.
The slumping hotel market in Manhattan also dragged down the national average, which fell by 44% year-over-year, according to RCA data. Even if sales in Manhattan had been flat, the U.S., transaction velocity would still have been down by double digits.
“Three months of no transactions is a rare event in Manhattan,” Costello writes. “Is something worse yet to come?”
He notes that the challenges for Manhattan’s lodging sector would be bad enough without the “looming threat” from the developing COVID-19 crisis. “Fears of the disease are limiting travel and tourism, potentially adding fuel to the fire for the hotel market nationally,” says Costello.
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