Hospitality Investing News - Mountain West (CO,WY,UT) April 2024

The Latest in the Mountain West (CO,WY,UT) Hospitality Market

As it is widely apparent, throughout 2022 and 2023, we experienced a marked dip in commercial real estate transaction volume. Notably, the final quarter of 2023 recorded 395 sales across the four major property categories, a decline from the 571 sales in Q4 of 2022 and a more substantial drop from the 1,112 transactions in Q4 of 2021. With just 1,511 properties sold in 2023, a significant shift in market dynamics has become increasingly perceptible. However, a recovery in transaction volume is expected in 2024 with the anticipated decrease in interest rates later this year. Despite a cautious approach, buyers are actively conducting thorough research and are earnestly evaluating each property. In fact, the current quarter has already shown a distinct increase in engagement per listing compared to the previous two years. Buyers want to invest but must remain prudent in their considerations. Their goal is clear: to find well-priced assets that offer sustainable debt coverage and the promise of growth.

As we anticipate a vibrant summer, bolstered by expected annual increases in RevPAR and a potential easing of interest rates, the timing could be opportune to list your property. If you're contemplating the value of your hotel in the current market, I encourage you to reach out for a complimentary Broker's Opinion of Value. This no-obligation assessment could be the first step in determining if this is the right moment for you to act.