Research firm completes reports on distressed U.S. hotels

By Jeri Clausing

Nearly 200 hotels in the U.S. are in trouble with their lenders, and 120 hotel construction projects have been put on hold, according to two new reports from Lodging Econometrics.

The reports were done to help investors find opportunities.

The Distressed Hotel Asset report includes details on every hotel with a public record of distress over the last year and a half. The report includes contact information for the ownership group and lead lender.

Many of the hotel owners are in the midst of a workout with their lenders and may be selling or in search of new equity partners, Lodging Econometrics said.

A second report details all projects that have been forced to halt construction. Many are in prime locations and have nationally recognized brand names.

In most cases, Ford said the principal and lender are anxious to continue construction, and would welcome new investment into the project said Lodging Econometrics CEO Patrick Ford.

"It’s an excellent time for investor groups to reenter the industry," said Ford. "There is growing demand for asset investment opportunities now that the hotel operating recovery is under way.

"New supply additions are declining rapidly. New construction announcements into the pipeline have been declining for eight consecutive quarters and are expected to continue to decline in the foreseeable future. New hotels forecasted to open in 2011, 2012 and 2013 will be at cyclical lows.

"If investments into these distressed assets or hotels that have halted construction are soon made, they could be hitting stride just as the industry’s operating recovery is accelerating and may by relatively unhindered by any other new supply coming online."

This page is protected by Copyright laws. Do Not Copy. Purchase Reprint
blog comments powered by Disqus

View Comment Guidelines

Please upgrade your Flash Player.
Please upgrade your Flash Player.

Travel Weekly Poll

Voices

  • Consumer media discover that travel agents do exist

    "Contrary to some thoughts, travel agents do exist ... We are usually able to get clients better prices, and we know we can see that clients have better experiences. And as our personal motto is: Our Service Travels With You."

    More»

Jobs

TW Index: Most Active Stocks

Latest Top News:
Caribbean
Europe
Travel Weekly is on Facebook
Viewpoints For Travel Agents
Travel Weekly Topics