By Nicholas Leider
ROOM FOR RECOVERY
The hospitality sector was devastated in 2020 , but vaccinations , industrywide efforts , and returning demand are reasons for hope .
Perspective isn ’ t the easiest thing to maintain when facing unprecedented challenges — and the COVID-19 pandemic provided plenty of those for commercial real estate markets in the year-plus since the resulting shutdown affected nearly every facet of daily life in the U . S .
But with a year in the rearview mirror , hotel property owners , operators , investors , and guests alike have gained enough perspective to know there is light at the end of the tunnel . Plenty of variables will dictate just how far the sector has to go to reach it — but it ’ s a comforting thought for an industry that ’ s been to hell and is on its way back in 2021 .
“ Hope is going to be driven by the widespread dispersion of a vaccine ,” says Geraldine Guichardo , global head of research for JLL ’ s Hotels & Hospitality Group and head of Americas Hotels Research . “ Once people feel more comfortable traveling and do not fear the risk of becoming contagious , there is real pent-up demand to travel again .”
But overcoming unprecedented challenges will not be possible without some suffering , in this case in the form of distressed sales , bankruptcies , and closures . While every market — bull or bear — is unique , there are lessons to be learned from history .
“ Look at what happened as we emerged from the Great Recession ,” says Daniel Lesser , president and CEO of New York-based LW Hospitality Advisors . “ Nobody was holding national meetings or conventions , but Las Vegas , for instance , was booming . I ’ m very optimistic , just seeing the amount of money that ’ s out there chasing quality opportunities in the hotel space . That says a lot to me because these are smart , sophisticated folks with a track record of success .”
Graphic by HH5800
CIREMAGAZINE . COM COMMERCIAL INVESTMENT REAL ESTATE MAGAZINE 35