As part of our first look at the CrowdStreet 2021 Investment Thesis, Chief Investment Officer Ian Formigle and Director of Investments Anna-Marie Allander Lieb shared their insights on the outlook and opportunities for hospitality. After hitting historically low occupancy rates in April, the hospitality industry started its slow march towards recovery over the summer. While we expect revenue per available room (RevPAR) and occupancy to remain low overall until mass immunizations take place, lenders have remained flexible and we expect the industry to eventually bounce back. Ian and Anna-Marie discussed their view on hospitality’s future, including:
- Where the recovery will happen first, with pent-up demand for vacations lifting travel and leisure quickly in certain markets;
- What factors could make ground-up development deals delivering in 2023 a great opportunity; and
- How the relative resilience of extended stay and economy hotels offer potential cash flow for investors.