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It really depends on the type of hotel (which is already a niche space as is).

Select service hotels do okay during a downturn. Motel 6 isn't sexy but they really do keep the lights on.

Ultra luxury is a mixed bag- the Four Seasons and Ritz stay open but not sure how active their development pipeline is to keep busy.

Then there is everything else in the middle (which is most of the product). Hotels are the most volatile but according to Trepp their CMBS defaults are the lowest (lower than MF) last I checked a few months back.

Interested to hear other opinions, hotels are my interest.

 

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