U.S. Hotel Market May Not Recover Until Late 2021 or Early 2022, says Report
Integra Realty Resources (IRR), one of North America’s largest independent commercial real estate valuation and consulting firms, has released its Mid-Year U.S. Hospitality Report, which predicts that the U.S. Hospitality Market may not recover until late 2021 or early 2022.
Julie Fugitt-Schultz, CCIM, director of Hospitality Valuation for Integra Realty Resources and national practice leader of Integra Hotels, states, “It’s no secret the U.S. Hotel Market has taken a significant hit, however a positive recent development is consumer sentiment rebounded in June with recent travel sentiment data mirroring this uptick. Consumer spending and leisure room night demand increased thanks to pent-up consumer demand combined with lower gas prices and safety perceptions of ‘drive-to’ destinations. Overall, we expect leisure demand to be the first to exhibit post-recession recovery, followed by a slower return of corporate transient and corporate group demand.”
Integra Hotels is IRR’s hospitality specialty practice group, offering valuation services for lending, market/feasibility studies, insurance appraisals, and litigation support. Over the past 36 months, IRR has completed 2,500 hospitality assignments nationwide, totaling more than $25 billion in asset value, ranging from small, independently owned bed and breakfasts, to major luxury hotel brand portfolios.