With growth in the hotel sector projected to be modest over the remainder of 2024, those who do invest in hospitality must be vigilant about expenses and maximize value—starting immediately upon acquisition.
By Arcie Propster, Principal at Partner Engineering and Science, Inc., published June 27, 2024
A recent investment market update from CBRE cites qualified optimism among hotel buyers. “U.S. investors have generally positive sentiment about the hotel market this year, with half of those surveyed planning to increase their hotel investments in anticipation of higher total returns and lower prices. Strengthening the balance sheet and difficulty in securing and servicing debt are the top challenges for those who plan to buy less this year.” With growth in the hotel sector projected to be modest over the remainder of 2024, those who do invest in hospitality must be vigilant about expenses and maximize value at every opportunity. Fortunately, there are ways to begin to boost GOP (gross operating profit) before the acquisition is even complete. Read on for ways to incorporate cost-saving and revenue-boosting initiatives in your due diligence process.
