Hotel Property Rebound Faces Years-Long Slog

Economy, midscale hotels will fare better than luxury: CoStar
Firm says industrial and apartment properties to perform well

A room suite of the Kimpton Hotel & Restaurants LLC Hotel Monaco is seen in San Francisco, California, U.S., on Tuesday, Aug. 9, 2011. Photographer: David Paul Morris/BloombergPhotographer: David Paul Morris/Bloomberg

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By Adam Tempkin

March 5, 2021 at 3:31 PM UTC

This article is for subscribers only.

Distressed hotel owners may need to wait until 2024 to see a full rebound.

Hospitality property values are forecast to see swift improvements after 2022 though a full rebound for all types of hotels is years away, according to real estate data firm CoStar Group Inc. The sector has a lot of ground to cover as valuations on hotels tied to defaulted or distressed loans securitized in commercial mortgage-backed securities fell more than 20% last year from origination appraisals.