Some investors fear that a recession is in the making, leading them to be more cautious and in some markets avoid new hotel development all together.
According to Marcus & Millichap's 2H19 National Hospitality Report, hotel investors in larger markets are beginning to pullback and look towards smaller metropolitan areas. In their report, M&M found that midscale and upper-midscale properties throughout the mid-South, Southwest and upper-Midwest regions have recorded the highest ROI over the last year.
Also found were that Urban hotels had the least RevPAR growth, while small town, suburban and airport hotels had the highest.