Pricing Power, a Natural Inflation Fighter
In a time of headlines about high inflation and turbulent stock and bond markets, what makes hotels a profitable investment, and why might they be better positioned than most real estate to fight inflation?
Hotels, like all real estate over long periods of time, typically grow in value, making most commentators say that it is an inflation-fighting asset class. What puts Hotels in a class by themselves is Pricing Power, and Premium, name-brand select hotels may just be the top of their class.
Our first proof, we are already exceeding our monthly distribution goals!
Hotels are able to adjust room rates daily (and even hourly) based on consumer demand, dynamically calculating the most profitable price points. As everyone knows, when the big game is in town, the travel sports teams, wedding season, hotel room rates soar! Additionally, because of the type of hotels we focus on, Premium Business Select Hotels, we have more control over overhead costs than resorts, putting us in a prime position to profit off the great travel comeback of 2022. Inflation is here, and possibly here to stay for a while, so the hotel industry’s freedom to adjust prices to meet demand and expenses is a major advantage.
Join us Thurs. June 23rd at 12PM EST / 9AM PST for our webinar "Pricing Power: How Hotels can be Great at Fighting Inflation," to learn more about how we are already leveraging our experience as hotel owners and operators to navigate the current economic climate.