Why Are Investors Shying Away From Hotels?
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Muoio: “Our forecast is for further improvement in hotel operating conditions, just at a slower pace than the last few years.”
IRVINE, CA—Investor interest in hotel assets has been waning lately, and it’s showing in reduced valuations. Ten-X’s (formerly known as Auction.com) December 2015 CRE Nowcast reveals that hotel valuations, while experiencing a year-over-year increase of 8.8%, saw a sharp monthly downturn in December, dropping 275.3 basis points from the previous month following a similarly lackluster showing in November. Ten-X’s chief economistPeter Muoio explains to GlobeSt.com exclusively some of the reasons for the recent decline.
GlobeSt.com: Please expand on the factors that you believe have been causing the recent decline in hotel valuations…
