Now is the Time - Building New Hotels
The tone and language of many presentations at the recent New York University International Industry Investment Conference made it very clear that now is the time, or at least the beginning of what might be the time, to consider things like building new hotels, recapitalizing hotels that could not be recently recapitalized, and selling hotels that could not recently be sold at replacement value or better. From the economists and statisticians in the big hall, to the deal junkies on the 8th floor of the Marriott Marquis, NY, the conclusion was the same. The fundamentals are strong, the economic indicators are moving in the correct direction, and there are rational and sound deals to be done. There is positive reinforcement for this in the PwC report for Q1 2013 [Click here to access the PwC report], and in the many hotel listings the brokerage community can offer. Let’s not get carried away by a wave of euphoria, but let’s not fail to appreciate that we may finally be back to where we need to be to move forward. The ADR, RevPAR and Occupancy growth numbers seem real enough, and as they are further tested in the marketplace, we can see if they can be sustained and bear fruit.