How Higher Interest Rates Are Reshaping Hotel Investment

I'm at The Lodging Conference with Greg Friedman, CEO of Peachtree Group, talking about what happens when the cost of money moves faster than the economics of a hotel deal.

Greg walks through a hypothetical $25 million loan where annual interest expense jumps from about $1 million to $2 million. Add higher operating costs and the margin for error gets very thin.

Owners must drive more revenue, protect NOI and take a much harder look at what an asset is really worth.

We also get into the odd split in today's market: developers face tougher economics while existing owners benefit from less new supply. Higher rates keep changing #HotelInvestment decisions, but Greg still sees opportunity for people who understand the fundamentals and know where to look.

Watch this one for a sharper read on hotel values, development and ownership strategy across #Hospitality.

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