8 quotes you need to read

QUOTE OF THE WEEK
“Given the sheer volume of capital waiting to pounce and active underwriting both on- and off-market opportunities today, those who wait the longest are likely to be left sitting on the sidelines.” – Dan Thorman, Aimbridge Hospitality  Read story

“The bid-ask spread is likely to remain wide, especially with the recent increase in short-term interest rates over the last 30-60 days. The pace of interest rate increases needs to slow before the bid-ask spread can narrow meaningfully. However, there is plenty of equity capital on the sidelines looking for a home, and we suspect more groups could buy all-cash and look to finance at a later date.” – Michael Bellisario R.W. Baird  Read story

“We think there will be a wave of conversions (to both new types of hotels and other uses altogether), retrofits, and reimagining in order to return profitability to these troubled assets. Lenders will not be as patient as they were in 2020-2022, and swifter moves will start to occur to embrace the newly established reality of the U.S. hotel market. It will be an exciting year to watch how these assets evolve. Many of the newer brands will see a benefit, but those that are both innovative and have a lower cost basis may see a stronger uptick in affiliations.” – Rod Clough, Emil Iskandar, HVS  Read story

“As market trends have demonstrated consistently, everything is cyclical, from taste in fashion to the appeal of various investment sectors. Urban hotel assets are no different. They will return to their prominent position in the hierarchy of hotel investments over the course of the next economic expansion.” – Stephen Hennis, Hotelogy  Read story

“Wherever you are in the hospitality, there is a dawning realization that the days of buying property at a discount and flipping it three years later are gone.” – Daniel Johansson, Cheval Collection, on the mood at the recent MIPIM event in Cannes  Read story

“This market didn’t really exist three years ago, and it continues to grow – it’s a new normal.” – Tourism Economics Adam Sack on how remote work provides further momentum for hoteliers  Read story

“I’ve been looking at possibilities in the U.S. for some time, none of which made sense to us financially—until now.” – Fattal Hotels Ronen Nissenbaum on the potential of the Tel Aviv-based hotelier coming to the U.S.  Read story

“The continued demand for lodging creates the potential for lenders working with borrowers to rework loans, and the fact that most assets have appreciated with the snap-back in demand in 2022 will be part of that calculation as well. In our space were always looking to maximize the business. That means managing the costs to develop and cost to operate.” – Brian Quinn, Sonesta International Hotels  Read story