DBRS: Hotel Pandemic Distress Less Than Prior Downturns

COVID-19 hit the hotel sector hard. DBRS Morningstar, Toronto, reported hotels had the highest loan modification rate among major property sectors due to the pandemic but said liquidations were lower than prior downturns.

Hotel Debt Markets Improving

The hospitality debt market is showing a resurgence as the lodging industry continues to recover, said JLL, Chicago.

Hotel Sector Recovery Slows

The hotel sector recovery has slowed in recent months after rebounding in the fall from April lows, said Fitch Ratings, New York.

Analysts Downgrade Hotel Outlook

Full recovery in U.S. hotel demand and room revenue remains unlikely until 2023 and 2024, respectively, said STR, Hendersonville, Tenn., and Tourism Economics, Wayne, Pa. The firms slightly downgraded their hotel outlook report.

April Sees ‘Historic’ Hotel Profitability Drop

U.S. hotel profitability metrics cratered during April, reported STR, Hendersonville, Tenn. During April, the sector saw total revenue per available room fall nearly 93 percent year-over-year and gross operating profit per available room fall 116.9 percent to a $17.98 loss per room.

Andrew Foster: Travel Nosedive Knocks Hospitality Industry

COVID-19 has impacted the entire United States and commercial real estate is no exception; however, no property type is quicker to experience the impacts of a downturn than lodging, where rental rates reset daily.

Analysts Downgrade Hotel Forecast Again

STR and Tourism Economics once again updated their hotel sector forecast. They now expect a 57.5 percent revenue per available room decline this year and a 48 percent RevPAR increase next year.