Message from Rod Clough, MAI, President, HVS Americas 

In addition to sharing some of our perspectives on the hospitality market, I want to reach out to you personally. 

These are uncertain times for our industry, our clients, our colleagues, and our friends and families. As we move through this disruptive period, I want to remind you that HVS is here for you. Our doors are open, and we stand, safe and fully functional, ready to assist you, our valued clients, with any aspect of your business as we work together through this challenging time. 

HVS has been supporting the hospitality industry in the U.S. and around the world for over 40 years. Our senior staff represents a collective 300+ years of experience advising our industry, including through multiple prior cycles and events.

This knowledge and experience are available to support you as you navigate these challenging times. Our platform is fully functional on a remote basis, so even though we are not currently traveling, our staff can access the full resources of HVS to assist you. 

Our expertise covers the full range of hospitality assets and spans the full lifecycle of a hotel, including services that support developers, owners, operators, lenders, and investors. And with 40+ offices in markets across U.S., Canada, and Mexico, we can offer local insights on a real-time basis.

We are confident the hospitality industry will recover but recognize that there will be some challenging times ahead. We will continue to monitor the situation and offer insights and information as we move forward. If we can be of help to you in any way, please don’t hesitate to reach out to me personally.

I look forward to hearing from you and wish you and yours well.

In Partnership,
Rod Clough, MAI
President, HVS Americas

The Importance of Financial Relief for the Hotel Industry 
By Anne Lloyd-Jones, MAI, CRE

The coronavirus (COVID-19) pandemic is having a profound impact on the hospitality industry, as travel restrictions, limits on large gatherings, the closure of restaurants and bars and, perhaps most influential, fear of the virus, have brought travel—and most other aspects of hospitality—to a virtual halt.

HVS Brokerage Insight: Outlook for Transactions in the Wake of COVID-19 
By Dustin Robinett and Kelson Reimer

As of February 2020, the market remained strong, with low interest rates continuing to attract investors despite some softening in the outlook for the industry. It’s a whole different world just a few weeks later. The coronavirus (COVID-19) has directly impacted the hotel industry through the expeditious cancellations or postponements of large events and business travel across the country.

COMING SOON - The Terrace Hotel, Lakeland, FL 

HVS, is pleased to present the opportunity to acquire and reposition the 88-key The Terrace Hotel, into a Marriott Tribute Portfolio Hotel. This property is excellently located in Downtown Lakeland and included is included on the National Register of Historic Places. Please visit our listings or contact Eric Guerrero, James Rebullida, or Fadi Rawashdeh for more information.

AVAILABLE OPPORTUNITY - Best Western Plus Lake Jackson Inn & Suites 

HVS, as the sole and exclusive advisory firm to Ownership, is pleased to present the opportunity to acquire the 64-key Best Western Plus Lake Jackson Inn & Suites, a limited-service asset located in Lake Jackson, Texas. Based on current pricing guidance, the Property is priced below replacement cost at $89,000 per key. To construct a similar limited-service asset with comparable amenities, the estimated all-in investment would be a minimum of $100,000 to $110,000 per key. Please visit our listings or contact Eric Guerrero, James Rebullida, or Fadi Rawashdeh for more information.

AVAILABLE OPPORTUNITY - Sheraton Houston West 

HVS, as the sole and exclusive advisory firm to Ownership, is pleased to present the opportunity to acquire the 158-key Sheraton Houston West, a full-service asset located in the historically strong Houston Northwest submarket.This opportunity presents an investor the ability to acquire the Property at a price well below replacement cost. To construct a similar full-service asset with comparable amenities, the estimated all-in investment would be a minimum of $130,000 to $150,000 per key. Please visit our listings or contact Eric Guerrero, James Rebullida, or Fadi Rawashdeh for more information.

AVAILABLE OPPORTUNITY - Best Western Oakdale Inn, Louisiana 

HVS, as the sole advisory firm to Ownership, is pleased to present the opportunity to acquire the 56-key Best Western Oakdale Inn, a recently renovated, limited-service asset. Given the excellent physical condition of the Property, a minimal change-of-ownership PIP is expected at $112,000 ($2,000 per key). Please visit our listings or contact Eric Guerrero, James Rebullida, or Fadi Rawashdeh for more information.

AVAILABLE OPPORTUNITY - TownePlace Suites by Marriott Stafford - Sugar Land Development Project 
By Roth Johnson

HVS, as the sole and exclusive advisory firm to Ownership, is pleased to present the opportunity to acquire the fee simple interest in a 2.4-acre site within the growing Stafford/Sugar Land submarket of Houston. The land is fully entitled to be developed as a 106-key TownePlace Suites by Marriott hotel—an upper-midscale, extended-stay brand. Please visit our listings or contact Eric Guerrero, James Rebullida, or Fadi Rawashdeh for more information.

AVAILABLE OPPORTUNITY - Staybridge Suites Dallas-Bedford Development 

HVS, is pleased to present the opportunity to acquire the fee simple interest in a 1.34-acre site within the growing Bedford submarket of Dallas. The land is fully entitled to be developed as a 70-key Staybridge Suites hotel; an upscale, IHG-affiliated, extended-stay brand. Please visit our listings or contact Eric Guerrero or James Rebullida for more information.

HVS in the News 

• As Conventions Cancel Over COVID-19 Fears, Hotel Industry Waits Anxiously
• COVID-19 and the European hotel sector
• Best Western: A Hotels Anomaly Ripe for Change
• Chicago’s convention and tourism workers are feeling the ripple effect of events canceled because of the coronavirus
• Blueprint Board weighs funding Arena District project at double the cost
• Tourism sector comes to a standstill as quarantine fears loom
• Common Council OK'd convention center expansion. That could reverse as cost estimate rises to $425 million