History Does Not Always Rhyme

We recently came across an interesting piece of data as it relates to the hotel business. Distressed hotel sales totaled $771M globally in 2020, far lower than the $2.2B recorded in 2019 or the $8.8B of sales closed in 2010, the peak year for hotel distress during the prior cycle, according to New York-based data provider Real Capital Analytics. It appears that PPP, other government aid, and likely general bank restraint and support prevented a much larger catastrophe from happening last year. With the industry showing signs of life, it is quite possible the worst is behind the travel business.

In other news, sadly it was announced that Jack DeBoer passed away at the age of 90. Mr. DeBoer was the pioneering visionary that created such brands as Residence Inn, Summerfield Suites (which became Hyatt House), and Value Place (which became Woodspring Suites). Mr. DeBoer was an apartment developer that literally created the extended stay space before selling his first venture (Residence Inn) to Marriottt. At SMC Hotels Group, we have built, renovated, and operated numerous extended stay hotels and tip our hat to the legendary developer.

Interesting Articles

1. U.S. Hotels Make Bold Ask for More Aid From D.C. Despite Ongoing Recovery

2. Is technology accelerating the decline of the front desk?

3. Hotels show signs of life with long-awaited travel boom in sight

4. Sonesta Completes RLH Acquisition

5. Travel industry urges Biden administration to lift restrictions, reopen international travel

6. Jack P. DeBoer, extended-stay and all-suite hotel pioneer, passes away