Stuck in the Middle: Hotels Hustle for Buyers Amid Margin Meltdown
Luxury and budget hotels are faring well, but those in the middle of the market are struggling. Experts see a wave of distress deals on the horizon.
Distressed investors could soon find themselves with bountiful opportunities in a certain segment of the hotel industry: the middle of the market.
“The luxury and super luxury areas are faring well, and the budget travelers are traveling and looking downwards for a better deal,” says Todd Soloway, chair of the hotel, hospitality and real estate litigation practices at Pryor Cashman. “However, the middle of the market is being squeezed. Margins are tighter, and they are struggling to keep up with high costs and the competition for labor, while juggling delivering quality service for their customers.”
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