Message from Rod Clough, MAI, President, HVS Americas 

With all 50 states beginning to lift the restrictions related to COVID-19, travel will also slowly begin to return to America.  

Hotels and hospitality are a cornerstone of the American economy, and HVS is here to provide support and guidance for our clients and partners during each step on the path to recovery. Whether you are a developer, owner, operator, lender, or investor, our expertise covers the full range of hospitality assets and spans the full life cycle of a hotel.

As hotels gradually begin to open their doors and take steps to welcome back travelers, we are more committed than ever to providing the insights you need. I encourage you to explore the research and insights available on HVS.com, written by our colleagues from around the world.

And, of course, if you would like to speak to someone personally, please don’t hesitate to contact me directly. We are always here to help.

In Partnership,
Rod Clough, MAI
President, HVS Americas

HVS Publishes U.S. Brokers Survey - Spring 2020 Edition 

HVS, the leading global services and consulting firm focused on the hospitality industry, has announced the publication of the Spring 2020 Hotel Brokers Survey, which provides an important overview of investment metrics for the U.S. hotel industry. The report provides market insights across key topics by hotel type, including discount rates, going-in cap rates, exit cap rates, current rooms revenue multipliers, exposure periods, marketing times, and selling expenses. In addition, it covers the impacts of liquidation and shares the general sentiment felt across various markets in the nation.

Organizational Restructuring in the Restaurant Industry Post COVID-19 
By Court Williams

In an ideal world, the restaurant industry would reopen after the Covid-19 pandemic to hordes of diners hungry to make up for lost time. The reality, however, is that a large percentage of former customers simply won’t have money to spend dining out.

Canadian Lodging Outlook Quarterly 2020-Q1 

Unprecedented declines in Covid-19 RevPARs in March in every major market throughout Canada, is expected to continue through next quarter as well.

HVS: Temporarily Closed Hotels Due to COVID-19: When to Reopen? 
By Neil Flavin and Suzanne Mellen, MAI, CRE, FRICS, ISHC

With the advent of the COVID-19 pandemic in the U.S. in early to mid-March 2020, hotel owners and managers watched demand for their rooms suddenly evaporate. Since then, tough decisions have been made regarding whether to remain open or temporarily suspend operations. Hotels that have temporarily suspended operations now need to decide when to reopen. This article addresses the considerations to be weighed in this process and provides one example of the calculus for a hypothetical hotel.

HVS Executive Search is Actively Recruiting 

HVS Executive Search is underway with a number of projects, including recruiting for the following positions: Manhattan Hotel Group CEO, Corporex Managing Director, Thomas Cuisine CEO, AKAM VP Business Development, and Tasty King Brand Officer. 

Hospitality Net Announces Mia A. Mackman to Lead World Panel on Wellness, Lifestyle, and Spas to Develop Top Strategies for Wellness in Hospitality  
By Mia Mackman

As the hotel industry grapples with market instability and changes worldwide, this also represents an opportunity for some hoteliers to take a longer-term view of their businesses. Hospitality Net launched a panel of leading hospitality experts on wellness, lifestyle, and spas. According to Ms. Mackman, the World Panel will work closely with visionaries, influencers, and executives to magnify the narrative related to ways wellness impacts, adds value, and enhances contemporary cornerstones in the hospitality industry. This represents an important opportunity to examine, develop, engage, and assist hoteliers with strategies that foster stronger wellness propositions and public health priorities that support diverse hospitality models.

HVS CPACE Strategy for Avoiding Loan Loss Reserves and Preserving Equity Capital 
By Kathy Conroy

What realistic choices does a bank have in handling anything from short-term loan modifications through major troubled debt restructuring without ultimately dealing with the adverse effects related thereto? And, as an alternative, does a lender really want to fight through a foreclosure process and likely Chapter 11 counter filings by the borrower?

COMING SOON - The Terrace Hotel, Lakeland, FL 

HVS, is pleased to present the opportunity to acquire and reposition the 88-key The Terrace Hotel, into a Marriott Tribute Portfolio Hotel. This property is excellently located in Downtown Lakeland and included is included on the National Register of Historic Places. Please visit our listings or contact Eric Guerrero, James Rebullida, or Fadi Rawashdeh for more information.

COMING SOON - Comfort Inn & Suites IAH Bush Airport-East 

HVS, is pleased to present the opportunity to acquire and reposition the 61-key Comfort Inn & Suites IAH Bush Airport-East. This distressed asset is located three miles from George Bush Intercontinental Airport. Please visit our listings or contact Eric Guerrero, James Rebullida, or Fadi Rawashdeh for more information.

AVAILABLE OPPORTUNITY - Best Western Plus Lake Jackson Inn & Suites 

HVS, as the sole and exclusive advisory firm to Ownership, is pleased to present the opportunity to acquire the 64-key Best Western Plus Lake Jackson Inn & Suites, a limited-service asset located in Lake Jackson, Texas. Based on current pricing guidance, the Property is priced below replacement cost at $89,000 per key. To construct a similar limited-service asset with comparable amenities, the estimated all-in investment would be a minimum of $100,000 to $110,000 per key. Please visit our listings or contact Eric Guerrero, James Rebullida, or Fadi Rawashdeh for more information.

AVAILABLE OPPORTUNITY - Best Western Oakdale Inn, Louisiana 

HVS, as the sole advisory firm to Ownership, is pleased to present the opportunity to acquire the 56-key Best Western Oakdale Inn, a recently renovated, limited-service asset. Given the excellent physical condition of the Property, a minimal change-of-ownership PIP is expected at $112,000 ($2,000 per key). Please visit our listings or contact Eric Guerrero, James Rebullida, or Fadi Rawashdeh for more information.

HVS in the News 

• Hilton’s select-service Tempo focuses on ‘zones,’ design
• In Philadelphia, optimism remains for a quick recovery
• Top Strategies for Post-Crisis Planning in Urgent Times of Wellbeing and Health
• ILHA Webinar Series on a post-COVID-19 future for luxury hotels
• Province pays $18.5 million to buy hotel for homeless
• Hotel operators to return to ‘a very different market', where trust will be ‘paramount'
• 5 things to do if your hotel can’t pay its debt service
• City Hall Is Cutting Spending to Deal with COVID-19’s Impact on Revenue
• Real Estate Insider: The hotel industry may have hit bottom, but the pain is far from over
• Dayton Mall owners, Austin area part of talks for study, future growth
• HVS: Lodging tax revenue may drop $6.1 billion in some U.S markets