Tag Archives: CRENews

Hotel Outlook: Economic Growth, Occupancy, and Airbnb

At Lever Capital Partners we are also seeing positive ADR and Occupancy growth for most of our hotel clients. Given the run up in RevPAR, there has been a slew of development and the commercial real estate financing world is now taking a harder look at new development projects. Commercial real estate lending for new hotels is now only provided for the best owners where the STR report shows a true need for the asset in question. There’s been a bunch of CRE News about Airbnb and the effect that it’s having in the hospitality market but I haven’t seen it given the deals we’ve looked at. Maybe it’s having a greater effect in primary markets like NYC and San Francisco but many of the assets we’ve financed recently continue to have positive RevPAR trends. Overall we continue to like the hospitality segment but are cautious along with the lenders about what might happen if there’s a slowdown in the segment given the increase in average interest rate for commercial real estate loans.

– Adam Horowitz, Principal of Lever Capital Partners and President of the Real Estate Capital Alliance

Click here for more information on economic growth, occupancy and Airbnb in the hospitality sector.

Smaller Metros in the West are Emerging

Our team at Lever Capital Partners has noticed similar trends as we started seeing more smaller metro deals come across our desk the last few years. It’s still hard convincing non bank commercial real estate lenders to do business in many of these markets, despite showing the data that supports commercial real estate financing in those areas. The more cre news similar to this article the better support we’ll have in the future when working on deals in this sector.

– Adam Horowitz, Principal of Lever Capital Partners and President of the Real Estate Capital Alliance

Click here to read more about the emergence of smaller and Western metros.