Why I Still Like Hotels
I have been going down to the beach in the offseason for most of my adult life. In the spring and fall it is very peasant to spend a few days relaxing and enjoying the restaurants and beachfront bars without the he crowds that come with summertime. Even for offseason Ocean City struck me as too quiet this trip and I paid the lowest price for an oceanfront room that I have in the past two decades, at least. In addition, while strolling around the boardwalk and town I saw what I considered an extraordinary number of small hotels listed for sale.
This is pretty consistent with what I have been seeing in the hotel industry. The marquis markets like New York and Washington are seeing some strength and their room rates reflect the strong activity. Once outside those markets, I am still seeing low rates compared to years past. The industry is still not seeing much merger and acquisition activity. Most of the deals I have been seeing in the smaller markets are distressed or bankruptcy sales right now. Private deals are happening well below the prices paid by the larger REITS, who seem to be less concerned about pricing when spending shareholder cash....535 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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