Post by Hospitality XChange

Must-read if you're underwriting hotel deals right now — the bid-ask gap is finally closing. JLL Hotels Americas CEO Kevin Davis says lower cost of debt is the single biggest driver behind rising U.S. transaction volume. Most sponsors borrow floating against the Fed funds rate, and cheaper, readily available debt is pulling buyers and sellers back together — reinforced by higher cap rates, strong RevPAR, and still-low supply. For investors, the math on quality assets — luxury and resort especially — is penciling again, and competition for "irreplaceable" group-and-leisure product is intensifying. Read the full interview here: https://lnkd.in/gpi4m9Ji #HotelInvestment #CommercialRealEstate #CapitalMarkets #RevPAR #HospitalityDeals