More hotels than any other property type are in the distress pipeline, through a transfer to special servicers. Yet lodging industry experts quoted in the newest LightBox Investor Sentiment Report say the magnitude of hotel distress may be overstated.
Michael C. Shindler, president, Four Corners Advisors, Inc., attributed the lack of distressed activity to generosity on the part of the lending community and the fact that the CMBS market has been very slow to take action.
“I expect we’ll start to see more,” he added. “But the feeling is that we are in recovery now.”
Investors interviewed for the report noted confidence that hotel investment would spread from safe, top-tier leisure destination properties to a broader base of properties, as industry experts expect to see a rebound in business travel and continued progress in pandemic mitigation efforts.
Longer term, Kevin Davis, senior managing director at JLL, suggested that over the next several years, only 10% to 15% of the lodging assets sold will be distressed. “It will be in the minority, and it will not drive the market,” he said.
Paul Bubny serves as Senior Content Director for Connect Commercial Real Estate, a role to which he brings 13-plus years’ experience covering the commercial real estate industry and 30-plus years in business-to-business journalism. In this capacity, he oversees daily operations while also reporting on both local/regional markets and national trends, covering individual transactions across all property types, as well as delving into broader subject matter. He produces 15-20 daily news stories per day and works with the Connect team and clients to develop longer-form content, ranging from Q&As to thought-leadership pieces.
Prior to joining Connect, Paul was Managing Editor for both Real Estate Forum and GlobeSt.com at American Lawyer Media, where he oversaw operations at both publications while also producing daily news and feature-length articles. His tenure in B2B publishing stretches back into the print era, and he has served as Editor in Chief on four national trade publications.
Since 1999, Paul has volunteered as the newsletter editor of passenger rail advocacy groups (one national, one local).
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