INVESTMENT
RECENT URBAN MIGRATIONS AND
HOTEL MARKETS
OPPORTUNITY WILL MATERIALIZE IN OUTLYING AREAS OF MAJOR MSAS , MEDIUM AND SMALL CITIES , AND TAX AND COST-OF-LIVING FRIENDLY STATES .
Contributed by JACK CORGEL , PH . D ., SENIOR ADVISOR , CBRE HOTEL RESEARCH
Unless you were assigned to work at the International Space Station during the past 16 months you know that during this period numerous U . S . city households and businesses relocated . The reasons include fear of COVID-19 contraction ( early ), greater opportunity to remotely work following the relaxation of pandemic stay-at-home orders , lower taxes and overall cost of living , and avoidance of rising crime and urban decay . Relocations can affect the political economy of subject locales in the U . S . Less clear are the possible consequences of recent migrations on the demand and supply dynamics in industries such as hospitality . This article offers some hypotheses regarding the near-term and long-run effects of recent urban migration on hotel markets based on theory and recent empirical studies .
A May 1 Wall Street Journal article titled ‘ The Great
56 hotelsmag . com July / August 2021