Convention hotels continue to struggle
Mar. 11th, 2023 11:35 am![[personal profile]](https://www.dreamwidth.org/img/silk/identity/user.png){kind=small}
walkitouthttps://www.ajc.com/news/sheraton-atlanta-hotel-in-downtown-faces-foreclosure/EV26CDQUR5AWJH4YTHH4LR5IHQ/
A Marriott for most of its life, Arden bought it in 2017, Legionnaire’s hit in 2019 and I think we all still remember what happened after that. This mostly business travel hotel is still well below pre-pandemic peak traffic.
The article has a couple of amazing paragraphs near the end:
“Downtown properties have been the first to feel the weight of rising interest rates and changing workplace trends, but real estate analysts predict the effects will continue. Tierney expects more building owners, especially those with older assets, may decide that foreclosure is the best option.
“They’re looking two-to-five years out and they don’t see a rebound,” he said. “So why try to catch a falling knife when you can just drop it right now, walk away and let the commercial bank deal with it.””
For a while, I blogged on and off about the predicted return to the office and chuckled at its perpetual pushing off further into the future, and reduction in expectations. I guess this is one of the last gasps of that theme? From here on out, it will be less about How Are People Going to Be Forced Back to the Office And Will It Be Fulltime and it’s going to be more generally about the evolution of work and travel.
(Unrelated, other than being by the same reporter, and also Atlanta property related: https://www.ajc.com/news/exclusive-mjq-concourse-moving-down-the-hatch-to-underground-atlanta/E23TGQDEWVA5PGXLW55JKJX27I/ So. Freaking. Cool. I hope it happens. Maybe I’ll go check it out in a few years.)
A Marriott for most of its life, Arden bought it in 2017, Legionnaire’s hit in 2019 and I think we all still remember what happened after that. This mostly business travel hotel is still well below pre-pandemic peak traffic.
The article has a couple of amazing paragraphs near the end:
“Downtown properties have been the first to feel the weight of rising interest rates and changing workplace trends, but real estate analysts predict the effects will continue. Tierney expects more building owners, especially those with older assets, may decide that foreclosure is the best option.
“They’re looking two-to-five years out and they don’t see a rebound,” he said. “So why try to catch a falling knife when you can just drop it right now, walk away and let the commercial bank deal with it.””
For a while, I blogged on and off about the predicted return to the office and chuckled at its perpetual pushing off further into the future, and reduction in expectations. I guess this is one of the last gasps of that theme? From here on out, it will be less about How Are People Going to Be Forced Back to the Office And Will It Be Fulltime and it’s going to be more generally about the evolution of work and travel.
(Unrelated, other than being by the same reporter, and also Atlanta property related: https://www.ajc.com/news/exclusive-mjq-concourse-moving-down-the-hatch-to-underground-atlanta/E23TGQDEWVA5PGXLW55JKJX27I/ So. Freaking. Cool. I hope it happens. Maybe I’ll go check it out in a few years.)