PERSPECTIVE
Real Real Estate
GETTING
ON
7 TRENDS THE HOSPITALITY INDUSTRY SHOULD BE TALKING ABOUT TODAY AND TOMORROW .
Contributed by D . MICHAEL DANIEL JR ., NATIONAL CO-PRACTICE LEADER , INTEGRA REALTY RESOURCES HOTEL AND HOSPITALITY PRACTICE GROUP
It ’ s been a choppy ride for the hospitality industry from the onset of the COVID-19 pandemic to the present . While most markets have regained a positive footing , there are several key changes . As a an appraiser entrenched in the dynamic hospitality sector , my primary role is to serve as a mirror to the market , interpreting and reflecting its trends and transformations . Through recent data analysis and engaging with industry leaders and participants , here are some of the pivotal trends crucial for real estate professionals , hotel owners , operators and investors to monitor closely in 2024 .
➊ POSITIVE MOMENTUM WITH INCREASED TRANSACTIONS One of the most encouraging trends emerging from recent discussions is the overall positive outlook for the hospitality sector in 2024 . Experts in the field are expecting a notable uptick in transactions compared to the previous year . Many see more agreement in new price discovery between sellers and buyers this year . This newly expected consensus will stem from various reasons , but impending large PIP updates from flags and looming loan maturities will be a notable catalyst from the seller ’ s standpoint . Furthermore , this optimism is fueled by the anticipation of a 1- to 2-basis-point decrease in interest rates , likely to occur in the third and fourth quarters . The expected rate cut is a mechanism that could release a wave of capital that has been patiently waiting on the sidelines for the right investment opportunities .
➋ THE RISE OF PIP-DRIVEN SALES A substantial driver behind the surge in transactions is the resurgence of Property Improvement Plans or PIPs . Many properties find themselves at a crossroads , compelled to meet rigorous brand standards
66 hotelsmag . com May / June 2024