The travel and hotel landscape faced unprecedented uncertainty as the global pandemic took hold. Now that the health crisis is beginning to subside, the sector is gaining momentum and creating new opportunity, according to Marcus & Millichap.
After a roughly one-third contraction in sales activity in 2020, velocity rebounded last year, with more hotels changing hands than in 2019, which was the previous peak. This is a highly positive sign for the sector. The creation of vaccines and other treatments that reduce the health risks of COVID-19 are improving most people’s comfort with travel and lifting investor sentiment.
Buyers are gravitating to properties that offer travelers a value entry point, a segment that outperformed during the health crisis. Investor interest in higher service-level hotels has not dried up either. Year-over-year, sales activity jumped across all chain scales, with upper upscale and luxury hotels returning to pre-pandemic volumes.
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