What Will Be of the Hospitality Real Estate Market in 2021?
To say that the year of the pandemic has been tumultuous for the travel and tourism industry, would be an understatement. Few other industries have been affected by the restrictions imposed by authorities as this one has, and few have managed to bounce back in between these periods of restrictions as quickly as it did.
At the core of anything tourism and travel related is the hospitality sector, which also presents some pretty attractive real estate opportunities on a regular basis. However, these times are anything but regular, leading many investors to ponder whether this is a good time to invest in hotel real estate.
What makes a hotel profitable?
As opposed to profit from most other types of real estate (namely the rent collected), which is regularized by a contract for the long term, hotel revenue can be very unpredictable. The upside is that supply and demand are ever adjusting,…