Hotel Sector Looks Up!
The mood of my panel at a recent hospitality summit was decidedly “up-beat” and looking forward to an improvement in both the quality and quantity of hotel opportunities later this year and in 2012. This is consistent with the data coming out now that examined the calendar quarter that ended last March 31st. The hospitality sector did better. Of course if you did not completely block out Q1 10, you will note that it would not take all that much to show a year-over-year improvement. But we are all happy to see it! If the REITS continue to flex their ability to pay top dollar, all cash, and we can add to that some assets come out of the Special Servicers, the level of activity in the hotel sector is expected to be brisk. Someone said to me that the brokerage community might be really busy because the Special Services would list their assets for sale with a broker to let the market drive the best price. I had not thought about that, but can see how it would be the case and how it might lead some assets to actually be “bid up” in the right circumstances. We will have to watch for that trend!