Call (206) 264-7735
Scott Real Estate Investments
|Business & Leisure|
National and International lodging projections are looking at modest growth in ADR and Occupancy throughout 2019.
However the Pacific Northwest will continue to outpace the overall industry. This will be driven by the a stronger national economy combined with Northwest technology growth. In short there are more gaining the ability to travel for business and pleasure.
According to TravelClick's North American Distribution Review both GDS and Brand.com channels were up 6.4% and 2.0% respectively and Travel Agency, Hotel Direct & Central Reservations Office channels decrease by 2.3%, 5.8% & 16.4%. This will impact all lodging, national and pacific northwest. Using the proper business generators is becoming more and more important.
There is a growing willingness to sell in the Economy segment in the northwest. This may lead to some value deterioration in this segment. Conversely, we are seeing a strong buy demand for mid priced, interior corridor, limited service properties. Markets continue to add new properties. Number of sales may decrease. Seller's will demand higher values. More properties will be offered from a pool of pocket listings from your Broker instead of public listings.
State of Washington legislators are considering an increase in the 1.78% excise tax to possibly 3.5%. If you are planning to sell in the near future this could significantly impact your net return.
**(Published In Hotel Business Dec. 2018)