Is any one Investing in Hotels

[Haseeb M.]

Is there anyone out there that is actively investing or interested in investing in hotels?

With Covid, times are tough for the Hotel industry. With Vaccines on the horizon and all the pent up demand, does anyone see a silver lining? 

Any thoughts?

[Shiv Patel]

@Haseeb M.

Houston is a bit of a different story. That market has been hit particularly hard. In general, Texas, has truly been the wild west for new hotel construction. Dallas and Houston have seen some of the largest increases in supply and are continually adding. This is partly because land and construction costs are cheaper. However, the properties are not underwriting too well. Its a tough market over there. I personally know owners down there that did great 2009-2015 and now have handed back their keys to the lender.

The key to investing in hotels is to locate markets where the supply/demand factor is balanced.