SPECIAL REPORT
Hecker : It remains prime city center , full-service hotels , but increasingly seeing resort deals with a more varied range of asset types in terms of product classification . Domestic markets were helpful in propping up in-country resorts , more so than city properties . Human : Luxury gateway , as always . London still remains very popular . The trend towards investment in resort hotels in Mediterranean markets should remain because there is still so much opportunity to exploit in that type of asset . Petiz : As per our earlier answer , we believe that luxury and extendedstay assets will be most resilient to any operating downturn and hence most highly sought after by investors . To the extent that valuations start going down , then other segments will certainly become attractive as investors look out to recovery and a new upcycle in 2025 and beyond . Kyle Stevenson , Berkadia : I would say extended-stays , distressed deals with lender financing are the most coveted asset types right now . There ’ s also a huge drive toward leisure resorts . Broad : Buyers seem to be chasing quality – newer construction or those that were recently renovated , while moving away from aged assets . In many ways , this supports overall industry valuations , as the impulse right now , with a strong assist from the brands , is for property remodels and brand conversions , as opposed to languishing portfolios of distressed properties .
From a property type perspective , extended stay assets are in favor , especially in the mid-market / economy segments where they seem to be providing much-needed housing in many locales . We are familiar with such portfolios with 90 % occupancy and an average stay exceeding two years . This will continue to appeal to retirees , some empty nesters and those who cannot qualify for or rather not pursue today ’ s mortgage rates and conditions .
From a location perspective , traditional leisure markets or markets with a leisure component still seem to be in favor , particularly higher-end properties .
72 hotelsmag . com Jan / Feb 2023