Property Types Hospitality
May 18, 2009
A new strategic alliance between Concord Eastridge Inc. and PKF Consulting is targeting hotel owners and asset managers caught in the economic downturn. The firms created the alliance to help ailing hotels improve their market position, complete the construction of a hotel or find buyers for projects on the brink of foreclosure. According to analysis by PKF Consulting, published January 9, the combination of a weak economy and rising levels of supply have caused one of the deepest and longest recessions in the history of the domestic lodging industry. As a result, the number of full-service U.S. hotels lacking the cash flow needed to pay their debt will increase by 25 percent in 2009, and property values will likely decrease another 20.1 percent. As of March 2009, PKF Hospitality Research is forecasting that the average U.S. hotel will experience a 13.7 percent decline in the revenue received from the rental of guest rooms in 2009, after having already declined an estimated 1.8 percent in 2008.
A new strategic alliance between Concord Eastridge Inc. and PKF Consulting is targeting hotel owners and asset managers caught in the economic downturn. The firms created the alliance to help ailing hotels improve their market position, complete the construction of a hotel or find buyers for projects on the brink of foreclosure. According to analysis by PKF Consulting, published January 9, the combination of a weak economy and rising levels of supply have caused one of the deepest and longest recessions in the history of the domestic lodging industry. As a result, the number of full-service U.S. hotels lacking the cash flow needed to pay their debt will increase by 25 percent in 2009, and property values will likely decrease another 20.1 percent. As of March 2009, PKF Hospitality Research is forecasting that the average U.S. hotel will experience a 13.7 percent decline in the revenue received from the rental of guest rooms in 2009, after having already declined an estimated 1.8 percent in 2008.
Recent Hospitality Headlines
