Remote Work Threatens Business Hotels’ Recovery, Boosting Default Risks

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Hotels relying on business travel and conferences are encountering refinancing challenges, partly because of falling property values as occupancy rates stay depressed

might not be enough to persuade lenders to extend new credit when their debts mature in the coming months or years.

Leisure travel has rebounded since the second half of last year, but the recovery has been much weaker for facilities with large meeting rooms that rely on business trips and conferences, partly because many meetings are now held remotely. Even as business-focused hotels can attract some vacationers, the numbers aren’t high enough to make up for the slow recovery in business travelers.

 

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This was a necessary market correction. The pandemic brought about changes that were already inevitable. It makes no sense in the current world for businesses to spend so much money on business travel when it’s unnecessary. A significant decline should have occurred years ago.

I mean look at the current rates, completely absurd! It’s about time a correction has been made to hotel industry

Good hotel rates have gotten ridiculous 🤔

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