NORTH AMERICAN CONDO HOTELS Outlook Bleak
An ongoing recession and depressed property values in the United States have taken the condo hotel sector from a roar to a whimper in just a few short years. As lenders crowd the sidelines like some entourage or paparazzi at the upcoming Academy Awards, transactions are as rare as quality pictures.
Akin to stampeding cattle second homebuyers are running away from purchases where in many cases negative equity is the norm. For those looking for relief from rental yields, the hospitality led residential sector is seeing travelers move back into an already ailing hotel supply.
There continues to be cases of partly filled zombie buildings where the statutory bodies or owners associations have become insolvent so banks are looking to take in non-performing assets. It all adds up into an ugly hangover scenario where credit was king and there look to be no real short-term rainbows of recovery.