KBRA Releases NYU International Hospitality Industry Investment Conference Briefing

NEW YORK--()--Kroll Bond Rating Agency (KBRA) today released its briefing on the 2018 NYU International Hospitality Industry Investment Conference, which was held on June 4th and 5th in New York City and hosted by the NYU School of Professional Studies Jonathan M. Tisch Center of Hospitality. In the report, KBRA highlights the following key takeaways from the conference:

  • The U.S. lodging industry continues to perform well, enjoying 96 months of RevPAR growth as of April 2018. Record demand levels driven by strong consumer spending, strength in corporate balance sheets, coupled with a low unemployment rate and supply increases that have begun to taper off have resulted in continued performance improvements.
  • Last year’s cautious optimism has been replaced with a robust outlook for the remainder of the year and 2019.
  • Disruptors that were highlighted include technology firms such as Amazon, Google, and Facebook. While Airbnb is still a concern, some hotel companies have countered by venturing into the home-sharing space themselves.
  • There have been a number of mergers and acquisitions in the past twelve months and most industry participants anticipate more consolidation and a potential REIT-to-REIT transaction.
  • The lending environment is currently favorable for borrowers. Despite increasing interest rates, there is a flurry of capital available, spreads are compressing, and borrowers are able to obtain covenants that were hard to get three years ago. Several owners noted that “now is the time to refinance.”

Please click here to access the report.

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About KBRA and KBRA Europe

KBRA is a full service credit rating agency registered with the U.S. Securities and Exchange Commission as an NRSRO. In addition, KBRA is recognized by the National Association of Insurance Commissioners as a Credit Rating Provider and a certified Credit Rating Agency (CRA) by the European Securities and Markets Authority (ESMA). Kroll Bond Rating Agency Europe Limited is registered with ESMA as a CRA.

Contacts

Analytical:
Kroll Bond Rating Agency
Anna Hertzman, 646-731-2367
Managing Director
ahertzman@kbra.com

Contacts

Analytical:
Kroll Bond Rating Agency
Anna Hertzman, 646-731-2367
Managing Director
ahertzman@kbra.com