At the risk of this message being lost in the multitude of emails, all containing the words “unprecedented” and/or “crisis”, we prefer to concentrate on the words “recovery” and “opportunity”. We are certainly aware that Covid has caused deep discomfort for most of our clients, but we also believe strongly in the resiliency of hoteliers and of the US economy. To that end, we will be providing a number of email notices featuring our current listings.

Clearly the transaction landscape has changed, especially from the lending perspective, as a result of the dramatic declines in revenue. The impact of Covid has the suddenness of 9-11, with the economic jolt of 2008, with both on massive doses of steroids. We have talked to a significant number of lenders, many of which are hospitality specialists, and all tell us the same thing………….as revenues recover, there will be still a place for strong deals, but the terms will probably not look like they did in Jan, 2020. Proforma (turnaround) deals will depend more on the sponsor and the equity than the property. Proforma deals and first-time buyers will be the most challenging. There is no doubt more equity will be required to get deals moving forward, and many of them will need SBA support.

Finally, we believe that the SBA will play an integral role in the mid-market transaction recovery, especially as it relates to the higher level of risk now perceived by lenders. Besides the foregoing, there are several compelling reasons to consider SBA. 1) If a buyer closed an SBA loan before September 27, 2020, the SBA will pay for the first six months of P&I all of which will be totally forgiven, and 2) the May rate for the 25 year SBA 504 debenture is 2.76 % FIXED for 25 years. We have never seen fixed rates like this.

As always, our experienced team members are available to assist with your questions and to discuss your objectives. Sometimes, it simply helps to have another perspective on what the market might look like going forward. Most of us have experienced the previous downturns and have had a first-hand view of history.

In any event, nearly all of the following listings offered substantial pre-Covid cash flow, and most are located in great markets that should recover nicely. Let us know if we can assist your interest in any of these offerings.

FEATURED LISTINGS

Holiday Inn Express & Suites Nebraska City, NE

Holiday Inn Express & Suites Great Bend, KS

NEW PROPERTIES

Leisure Real Estate Advisors, LLC is based in metro Kansas City and has a specialty concentration in the marketing and sale of hotels and provides exclusive representation to owners of hotel real estate. With over 75 years of collective hospitality experience and over $1.2 billion in sales, the company has become one of the premier hotel brokerage firms in the country and has been recognized by Hotel Business and Hotel Management magazines for its performance. It has also received the 2013, 2014, 2015 & 2017 Power Broker from CoStar. It has offices in Kansas City, Columbia, MO, Lincoln, NE and now, Sioux City, S. Dakota and an affiliated office in Wichita, KS. For more information about the company or to discuss the investment market in general, please click on the following link and call any team member: https://www.leisurerealestate.com/brand-wom/