Jon Peck
Hotel Renovations: When to Go Big
Jon Peck | September 6, 2024
Most owners and prospective buyers try to reduce their hotel’s Capex spend associated with PIP or Renovation work and with good reason- to keep their investment basis as low as possible. When and How to “Go Big” on your Hotel Renovation However, there are scenarios below where owners may want to go bigger. The hotel is in a strong demand environment and underperforming the competitive set, especially if the hotel has “good bones” and most of the work would be interior. Owner has broader economic interests. For example, the hotel is or could be part of a mixed-use project and the hotel upgrade would improve the positionin...
Hotel Development: Pencils Down
Jon Peck | October 17, 2023
By Jon Peck Hotel supply grew a meager 0.5% in 2022 and is forecasted to grow just 1% on average for the next three years, according to a CBRE June report. Meanwhile, demand is expected to exceed supply with some projections showing demand increased as high as 2%. Hotel Supply and Demand Historically, supply and demand have maintained a closer balance. This imbalance bodes well for existing hotel owners but not for hotel developers and the ecosystem that supports them (architects, construction firms, Interior designers, etc.). The reason for the imbalance is straightforward: the math doesn’t work for most new hotel projects, w...
ALIS in Wonderland
Jon Peck | August 23, 2021
By Jon Peck I recently returned from the ALIS (Americas Lodging Investment Summit) conference in Los Angeles, and it felt a little falling down the rabbit hole for two reasons: 1) It felt strange (but energizing) to be around so many people again. 2) The high-quality slate of presenters was generally upbeat and optimistic when I expected to see despairing looks after more than a year of jaw-dropping RevPAR’s and ongoing forbearance discussions (and pleading) with lenders. One of the more memorable quotes from Alice in Wonderland was by the Queen who quipped, “Why sometimes I believe as many as six impossible things before brea...
