Coronavirus: Hotel Real Estate in a Turbulent Macro-Economic Environment

Jochen de Peuter | April 14, 2020

By Jochen de Peuter Would you invest your money and time in a hotel project? Once more, the world is hit by a crisis, a pandemic this time, which affects all world economies. Many industries are suffering in particular the hotel industry. What is the problem of hotels and hotel real estate in times of Covid19 virus? Hotels are a capital-intensive business and require a lot of capital to build, buy, maintain, operate or renovate. In particular, a luxury hotel project on a favourable location, such as big city centres or top tourist destinations, require a big wallet. Secondly, any new hotel project or hotel renovation consume a lot of ti...