What is so special about 2024?

What is so special about 2024?


12 Jan 2021

Just a quick blast I wanted to share. Looking over CBRE's briefing on an overall picture for hotels. I had to just stop reading for a sec and wanted to share this right away. I found this very interesting.

Look at this graph, some quick things to look at are: Occ (Occupancy, you know what that is). ADR (Avg Daily Rate, the average on the daily rate the hotel charges) and REVPar (it's a formula that offers a quick insight on the hotels ability to perform).

But look at the orange flags I did. 2019s numbers and 2024's numbers. The bench is 2019, that is where we want the hotel to be performing in a POST Covid world. We are buying hotels at 50% of 2019s values. So, if 2024 is out pacing 2019 why do you think that is so important to me? 

This is the period we are looking to sell or refinance. What will you think our hotel’s value will be in 5 years, up or down from 2020/2021?

Also, one more note, here I quote from the document:

CBRE forecasts the lower-priced chain-scales to return to 2019 nominal RevPAR levels sooner than the higher-priced chain-scale 

We’re not in the market for the Ritz Carlton, not yet anyway…



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