The hotel market isn't the best place to stay right now, according to Lane Hospitality's Bill DeForrest and Hostmark Hospitality's Jerry Cataldo at yesterday's Chicago Real Estate Council luncheon at Maggiano's. In '09, downtown hotel occupancy fell 6% from ‘08 (at just 66.4% per night). The average daily rate was down 18.5%. That beats the overbuilt O'Hare market, where travelers are paying just $97.50 a night to stay in even big name hotels like the InterContinental. Bill said the boutique hotel products took the hit first, but he also thinks they’ll be the first to recover since they can offer competitive rates.
Cleaning up some of the mess left by hotels and foreclosed properties: RSM McGladrey's Christopher Alfirevic and Robert Koza along with Robbins Saloman & Patt's Kymn Harp and Lyons Realty Advisors' John Lyons. Kymn says he recently worked on several transactions involving a distressed buyer or seller, and John advises clients on when to buy distressed properties; he says business hasn't picked up as quickly as he thought it would.