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Lodging Conference panelists said hurricanes will escalate prices and there is already an inordinate amount of hotel supply in Houston; also money is cheap, but some are waiting until the political uncertainty passes.
In a session last week at the Lodging Conference, Let’s Talk Development, panelists discussed the number of hotel properties affected by the latest disasters, including Harvey, Irma, Maria, the Mexico earthquake and the Northern California wildfires, in addition to current hotel market dynamics and economic environment. Moderator Michael Desiato, president, MGD Consulting Services, discussed all things hotel development with Janis Cannon, senior vice president, upscale brands, Choice Hotels International; Chris Drazba, vice president, core brands and Mexico development for the Americas, IHG; Chip Ohlsson, executive vice president and chief development officer, Wyndham Hotel Group; and Jon Wright, president and chief executive officer, Access Point Financial Inc.
Ohlsson said Wyndham has 600 properties in the hurricane and earthquake zones, and all properties stayed open. Cannon said Choice Hotels didn’t have any buildings impacted in the hurricane zone but had 16 properties in the fire zone. Drazba said IHG has 300-plus hotels in the hurricane zone but no significant damage. In a later session at the conference, Ben Brunt, principal and executive vice president, acquisitions and development, Noble Investment Group, said the hurricanes will escalate prices and there is already an inordinate amount of hotel supply in Houston.
The hotel development group then discussed whether there is optimism or concern about the hospitality financing market going forward, and what is resonating with hotel travelers across the country.
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