Hotel investments tips

While 2022 was a post-pandemic boom year for hotel demand in much of the world, total global hotel investment volume decelerated slightly to $71.9 billion, a decline of 2 percent relative to 2021. The relative lack of outbound Chinese hotel investment, the Russian war in Ukraine, and recessionary pressures in several markets tamped down the pace of growth.

Sales of hotel rooms are booming post-pandemic. But market turmoil will likely put most dealmaking for hotel assets on hiatus for the first half of the year.

All types of hotels have enjoyed stellar performance in the post-pandemic surge, but it’s properties offering something distinctive in a particular market that have the most promising financial returns. Investors see the most potential gain in hotels that address growing guest tastes for distinctive, experiential offerings.

Tyler Morse, Chairman and CEO of MCR Hotels, revealed that his company had acquired about 70 hotels and two software companies during the pandemic when he spoke at the Skift Future of Lodging Forum.

Here are some excerpts from Daily Lodging Report from the past week. If you’re not a subscriber, you should be. Get news on hotel deals, development, stocks, and career moves. Sign up here, now.

Overseas buyers have made up nearly half of the recent investment in Japanese hotels because of the yen’s relative weakness to other currencies, Japan’s lower interest rates compared to rates in many other major countries, and a rebound in international tourism.

Here are some excerpts from Daily Lodging Report from the past week. If you’re not a subscriber, you should be. Get news on hotel deals, development, stocks, and career moves. Sign up here, now.

If you listen to the half-dozen largest, publicly held hotel groups based in the U.S. and Europe, you would think owning the hotels you run is a terrible strategy and that providing large hotels for conventions and group bookings is a bad idea. Yet Loews, a publicly held holding company, is happily pursuing both strategies in its hotel business.

Expect a rising demand for hotel asset managers, especially in Asia Pacific. This is a trend I believe has gone mostly unnoticed. The demand will be driven by changes in ownership structure.

Global capital investment in travel and tourism totaled $856 billion last year, down 23% from its pre-pandemic level of $1.1 trillion in 2019, according to the World Travel & Tourism Council’s recent Economic Impact 2023 Global Trends Report.