The 2024 hospitality real estate industry will likely remain steady. Although 2023 saw reductions in hotel sales, many brokers are still successfully collaborating with sellers and buyers looking to make a strong deal. In Hotel Business Magazine’s 2024 Green Book, Earle Wason had the chance to sit down with the team to discuss his thoughts on 2023 and provide insight into the future of the industry for the next year.
When compared to previous years, Wason Associates Hospitality Real Estate Brokerage Group saw strong performance in 2023, however there were still slightly fewer transactions. Although the transactions were less frequent, Wason Associates had multiple higher commission sales including the Anchorage by the Sea in Ogunquit, ME, in June for $100 million and the Tapestry Capitol Plaza in Montpelier, VT, for more than $22 million.
Earle moves on to discuss the types of hospitality properties that will be popular in 2024. He forecasts that resort properties will continue to be the strongest market segment. When asked to elaborate, he continued “The independent, non-franchised resorts are getting a very serious look. Also, hotels that can be purchased under $100,000 a room and in need of renovation. As construction prices hit $200,000 a key and up, the remodeling costs will allow for an all-in purchase significantly below new-construction costs and can focus on a room rate that guarantees a hotel to compete very favorably in most markets.”
Hotel revenues will likely continue fall off in 2024, as the economy does not support major investments for most Americans. Interest rates have also had a big impact, causing many to make the choice to sell their hotels. According to Earle, there has been a major generational shift in previous years, and he predicts this will continue. To learn more about the future of hospitality real estate, read Hotel Business’ Volume 32 Number 12 Green Book in its entirety.
About Wason Associates
Wason Associates Hospitality Real Estate Brokerage Group, based in Portsmouth, NH, is a highly respected New England-based brokerage firm comprised of professionals who bring a unique combination of financial, banking, and real estate expertise to each transaction. President Earle Wason, CCIM has over 30 years of experience in the hospitality real estate market. Offering advisory services to both buyers and sellers, Wason Associates provides a strategic, client-centric approach to problem-solving, financial advising, and transaction execution. For more information on Wason Associates, visit hospitalityrealestate.com.