In 2023, around 1,100 hotels converted or changed flags, well below the 1,400-hotel average of the prior decade. After the sharp revenue losses in mid-2020 and 2021, hotel owners often needed help to maintain their properties or embark on capital projects. Owners were usually allowed to use the funds kept as reserves for replacement to pay the interest on their mortgage. However, this led to their inability to fund property improvement plans, or PIPs, as required by the franchise contract.
US Hotel Conversion Activity in 2023 Was Lowest in a Decade
Pandemic Did Not Bring the Expected Sharp Increase in Flag Changes
By Jan Freitag, Isaac Collazo
CoStar Analytics
April 15, 2024 | 2:28 P.M.
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