Yesterday, we were delighted to co-host with HVS, Alix Partners and Bird & Bird, a webinar on the forecast valuations in the hotel sector and to discuss how the sector will hold up against the pandemic.
There were a number of leading experts who joined the session to provide their insights and overall, the picture was relatively optimistic:
· There are many who are now beginning to see opportunities in the market
· It is forecast that full recovery will take until 2023 but valuations are likely to only see a decline of between 10-20%.
· The fall in valuations was worse in 2008/9 and that saw full recovery by 2013/14
· The supply pipeline is likely to shrink
· There are many landlords who are beginning to think differently and are open to alternative options.
· The industry is performing well against a number of other sectors and in retrospect may well prove itself to be a relatively resilient sector for investors.
· Operators today are very professional, sophisticated and able to really adapt to market conditions
· Relationships are king and this will see events & meetings recover. Once one company resumes business travel, others will follow. Virtual events have been good for maintaining relationships, not for building new contacts.
It was a thought-provoking session, so please do watch the enclosed link the recording.