Hotel Sales Market: ‘Active and Liquid’
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Upper-midscale properties, such as the Hampton Inn Pittsburgh/West Mifflin, are trading faster than any other chain segment. MMI brokered the sale this past May/
CALABASAS, CA—The lodging sector’s performance lately and over the long term is giving rise to “unvoiced hopes” that this cycle will be different from its predecessors,Marcus & Millichap says in a new report. One macroeconomic trend that could create turbulence in the months ahead, though, is stock market volatility, the firm states.
“The recent turmoil in global equity markets illustrates the difficulty involved in anticipating unforeseen events capable of disrupting positive trends,” according to MMI’s report, with input from a team led by Peter Nichols, director, national hospitality group. In particular, the Federal Reserve’s timing on an interest rate increase, as well as the extent of its actions, could be affected by the markets’ uncertainty, triggering “a reconsideration among hotel owners of near-term objectives. An inevitable rise in the Fed Funds rate will likely affect the prime rate, a frequently used benchmark in hotel debt.”…
