Commercial Real Estate: Increasing demand in the Hotel Market

According to preliminary data from Costar, there have been a growing number of investors who have been purchasing property in the U.S. hotel and hospitality sectors.

Being luxury expenditures for most consumers, the Hotel and Hospitality was among the worst hit segments of the commercial market during our recession. As a result, the majority of buyers jumping into these types of acquisitions are finding it easy to find distressed assets in core locations at extremely discounted prices.

In addition to low prices, the Hotel and Hospitality industry has also begun to see a steady increase in occupancy gains. This increase in occupancy has translated into a growth in the average expected revenue per room.

According to the recent Hotel Investors’ Gauge by Smith Travel Research Analytics and www.HotelNewsNow.com, 81% of investors surveyed are actively pursuing acquisitions. In addition, over 50% of those surveyed believes that occupancy rates will return to peak levels by 2012.

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Commercial Investors Jump Back into the Market
Commercial Real Estate Sees Improvement

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