We have always used discounted cash flows as a method for valuing hotels, so there has always been an element of predicting the future, but that uncertainty was heightened by the pandemic. After the vaccine is deployed, when does business ramp up and how quickly?
While “sun and sand” hotel trade will rally within 24 months, for corporate business travel, the recovery could take more years.
The hotel industry is debating whether there will be a permanent loss of 15-35% occupancy associated with corporate conventions. What will be completely lost to Zoom, and what percentage will come back? Follow us to know more about this.