Trends in the Lodging Sector

As revenues have largely recovered back to 2019 levels (widely viewed as the last stabilized year), the lodging sector is now under significant expense pressure in Wages, Property Insurance, Taxes, and Operating Supplies. This, coupled with the interest rate environment, and wavering travel preferences, continues to exert considerable stress on hotel asset performance. Additionally, the ongoing Cap Ex needs (Franchisor mandated as well as ongoing infrastructure maintenance) have left some hotels more challenged than others.