Have you tried booking summer family trips? Hotel prices are way up and many resorts are full or close to full. Did you buy hospitality real estate at attractive prices?
Hotel Prices Are Way Up
Have you tried booking summer family trips? Hotel prices are way up and many resorts are full or close to full. Are valuations for hospitality properties following the trend?
My focus is on multifamily properties and we see strong demand for apartments in Texas and other growth markets such as Arizona, Florida, the Carolinas, Tennessee, Georgia. With more people moving to these states there is more competition for apartments and rents are rising.
My focus is not on the hospitality sector but I’m in the midst of trying to schedule a family vacation for the summer. I have been floored by the nightly rates for resorts and the fact that many don’t have any vacancy.
Remember during Covid, travel dropped incredibly and hospitality properties were negatively impacted in a massive way. Occupancy and cash flow for these properties dropped dramatically. When cash flow drops so do valuations.
There’s a famous quote from Warren Buffet;
“Buy when there is blood in the streets”
I believe 2020 was one of those years for hospitality properties. It was hard to even think about buying these properties in the middle of Covid but here we are a year later looking at properties that are full or close to full and charging record nightly rates.
I applaud those investors that took action, bought these hospitality properties at low valuations in the midst of the crisis and now are seeing that risk pay off in a big way. The bulk of my contacts and my knowledge is in the multifamily sector and I did not take action to purchase hospitality in 2020. Looks like a missed opportunity.
Why do I share this story with you?
We all have more to learn. We all have missed opportunities. Let’s learn and get prepared for the next wave of opportunities whatever those are for you.
If you haven’t invested in real estate before but want to, get educated, learn, get prepared, then take action!
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