CBRE Hotels

'The spread between hotel and commercial real estate (excluding hotels) cap rates expanded to 4.44% in 2020 then compressed to 2.44% by Q1 2024. The long-run average since 2001 equals 2.98% indicating a normalization of hotel investment risk.' Jack Corgel

“U.S. hotels performance was softer-than-expected during the summer months, partly due to Americans traveling overseas in record numbers. At the same time, the slow recovery in inbound international travel has created an imbalance in U.S. leisure demand. Despite this, continued improvements in group and business travel served as relative bright spots in the third quarter.” Rachael Rothman, CFA, ISHC https://lnkd.in/gFQS4YTZ

Central business district (CBD) hotels are underperforming relative to their non-CBD counterparts due to shifts in technology and demand patterns. The proliferation of food delivery apps in the last five years, for example, has put pressure on hotel restaurants, particularly those located in CBDs. Read the full report: https://lnkd.in/g5V8e4hp

Over the weekend I had the pleasure of speaking on a panel for NYU and Cornell masters and undergraduate students to discuss trends in hotel real estate & the investment sales marketplace. Many thanks to the NYU Hospitality Business Society and Cornell MMH Program for the opportunity and for putting together such a wonderful event! Can't wait for next year!

The findings from CBRE's Hotel Investor Intentions Survey provide key insights on the state of the industry. Complete the survey to help guide decision-making across the sector: https://lnkd.in/e_ysYwTj

CBRE Hotels Figures Report - Major Hotel Markets Performance Q3 2024. Despite broader economic headwinds and the continued high interest rate environment, there remains a significant amount of capital on the sidelines waiting to be deployed in the sector once official interest rates commence the anticipated downward trend. Initial yields have continued to soften to just under 5% over YTD July 2024 with this trend also partly reflecting the changes in the transaction composition with more mid-tier and regional assets. #CBRE #CBREHotels Ally McDade Troy Craig Vasso Zographou Raymond Tran Tom Gibson Alexia Morelli Nick Hill Ashley Ferguson Wayne Bunz Hayley Manvell Paul Fraser Taylor Morris Northy Chen Aaron Desange Ryan McGinnity Charlie James Dalila Palazon Scott Callow

"People aren’t traveling the way they used to. It doesn’t mean they’re traveling less. Demand has fully recovered. They’re just traveling differently, to different places at different times for different reasons." Rachael Rothman, CFA, ISHC

'Only 30% of brands delivered above-average RevPAR growth over the past five years, down from the 52% of brands with above-average RevPAR from 2013 to 2018.' Read the full report: https://lnkd.in/g52hjdrQ

'Slowing RevPAR growth and maturation of the U.S. hotel industry are driving brand proliferation to attract new customers. The average number of brands per brand family tracked by CBRE increased to 25 in 2023 from 13 in 2013.' Read the full report: https://lnkd.in/g52hjdrQ

Discover the direction of #LuxuryRealEstate with CBRE's European Luxury Real Estate 2024 Report. As high-net-worth individuals stimulate demand, luxury brands are finding new ways to elevate their customer experience. From iconic cities like #London, #Paris, and #Milan, to emerging hubs like #Amsterdam, learn how the real estate that underpins luxury is evolving. https://cbre.co/3UnxxpS