UNDERWRITING in a time of inflation

NET OPERATING INCOME IS PUT UNDER THE MICROSCOPE .

Contributed by ANDREW BROAD , MATT DOWER , ROBERTDOUGLAS

Inflation has an unwelcome way of calling on us to Pay the Piper . If we look to the months , and , now , years , following the black swan event we call the novel coronavirus pandemic , even with plunging occupancies and revenues , the fire sale on distressed hotel properties that many predicted or feared never happened .

As occupancies plunged and many properties closed at least temporarily , hotel owners and their property and asset managers were able to negotiate forbearance with lenders ; raid CapEx and FF & E reserves to use as operating funds ; defer in many cases property maintenance and brand-mandated

54 hotelsmag . com Jan / Feb 2023