Why more hotel investment opportunities could come to market

Rising interest rates and deferred capital expenditures are pressuring some hotel owners, which could lead to new investment opportunities or discounted sales, although distress has never reached the level that some observers predicted earlier in the pandemic. “Most owners did not invest in cap ex during COVID,” says Kevin Davis, CEO of JLL Hotels & Hospitality. “That is going to trigger opportunities for investors to provide rescue equity and or preferred equity.”