Happy New Year!
We hope that you and your family have had a relaxing and enjoyable holiday season (as we have). We’re refreshed and ready to jump into the new year with both feet, so let’s get to it!
Hospitality Market Outlook
The hospitality industry in the Pacific Northwest (PNW) region of the United States is in a strong position for the near future. According to data from industry experts, hotel occupancy and average daily rates in the region have been steadily increasing over the past year. This trend is expected to continue as the region’s economy remains robust and tourism contributes significantly to the area’s growth.
One factor that is particularly positive for the hospitality industry in the Pacific Northwest is the region’s diverse range of attractions, including outdoor recreation, cultural events, and urban amenities. These offerings appeal to a wide range of travelers and help to drive demand for hotel rooms.
In addition, the Pacific Northwest is home to several major corporations and technology companies, which provide a steady stream of business travel to the region. This, combined with the increasing popularity of staycations, has helped to keep occupancy rates high.
Overall, the outlook for the hospitality industry in the Pacific Northwest is bright. With a strong economy, diverse attractions, and steady demand from both leisure and business travelers, the region is well-positioned for continued growth in the coming years.
CIP Celebrates Closed Transactions for 2022
The CIP Team comprises highly qualified professionals who share a strong working relationship and are also family. Our team is dedicated to putting our client’s needs first in every transaction, and we prioritize building long-term relationships. We are committed to transparency and honesty in all of our endeavors. Despite challenges in the current economic climate, we remain optimistic and proactive, seeking creative solutions to get deals done.
- JUST SOLD! Chewuch Inn & Cabins – 20 Key Midscale Resort
- JUST SOLD! River Run Inn & Cabins – Methow Valley Riverfront Property
- JUST SOLD! Birch Glen Lodge – 27+ Key Economy Resort
- JUST SOLD! Eagle’s View Inn & Suites – 53 Key Midscale Independent
- JUST SOLD! Motel 6 – Ellensburg – 72 Key Economy Franchise
- JUST SOLD! Wingate by Wyndham Great Falls – 62 Key Midscale Franchise
- SOLD! Four-Property Hospitality Portfolio
- Cowlitz River Lodge – Midscale | Select-Service | 31 Keys
- Nisqually Lodge – Midscale | Select-Service | 0-25 Keys
- Mill Village Motel – Midscale | Select-Service | 32 Keys
- Crest Trail Lodge – Midscale | Select-Service | 27 Keys
- SOLD! La Quinta Inn Missoula – 80 Key Midscale Hotel Near Int’l Airport
- SOLD! Packwood Lodge – Only 23 Days on Market!
- SOLD! Sportsman’s Lodge – Casino, Sports Bar, Restaurant, and Hotel
- SOLD! Surf & Sand Inn – Limited-Service Economy Hotel
- SOLD! Outlook Inn and Water’s Edge Suites – Upscale Resort Portfolio
What To Expect In Hotel Financing For 2023
While there have been concerns that the wave of debt maturities in 2023 will cause disruptions, lenders and experts believe it will be managed without significant issues. The cost of capital for hotel financing is expected to continue to increase. However, at a slowing pace through the year, there is no reason to believe that the availability of hotel financing will be impacted. Crystal Investment Property maintains extremely strong relationships with hospitality lenders, and we can facilitate reliable financing when we enter into a transaction.
Unsurprisingly, higher borrowing costs lead to more significant differences between what buyers are willing to pay and what sellers ask for on potential transactions. Many buyers are holding off on making decisions until interest rates become more stable. The combination of higher borrowing costs and rising operating costs due to inflation makes it difficult for buyers to justify paying the lower cap rates prevailing under more favorable lending conditions. Despite these challenges, it is essential to remember that the hospitality industry has a strong track record of weathering economic downturns and will likely continue to be a solid investment opportunity in the long term.
CIP’s Ongoing Commitment To The Hospitality Community
As we look ahead to the coming year, CIP is excited to support the hospitality industry. Our top priorities include maintaining exceptional communication and service standards, enhancing marketing efforts, and elevating the client experience. At CIP, we believe that hotel transactions are about more than just making a sale. They are about establishing long-term relationships and finding the right property for hotel owners to help them reach their objectives.