Are Hotel Disruptors Becoming Targets For Small Investors?
Hotels may no longer be the sole choice for hospitality real estate investments. The popularity of disruptors are changing and expanding this investment class. While not widespread, smaller investors are at least looking at these opportunities that are not mega million-dollar projects. And it’s not just AirBandB’s. Vacation Rentals, Spas, Wellness Centers, rental cottages in village like life-style clusters, and the increasing popularity of RV parks is widening the choices for investment capital. While these emerging latter-day leisure time selections are infringing upon leisure guest demand, there are no available resources (like STR) to determine their impact. Other consultants have echoed my concern that when they are attempting to determine lodging supply and demand in a market, empirical data is not available for these disruptors. While it’s too early to determine the impact (if any) that these smaller investors are having on transactions, we’re attempting to do further research as we continue to determine leisure demand in various markets.