Marriott remain bullish that the return of leisure travel will underpin 2022 performance and this does appear to be playing out with our clients, at least so far.   However, relying on leisure activity as a long term solution could require a significant market repositioning and associated capital expense for many owners/operators. 

In the face of building inflationary and liquidity pressures, my recent experience is that whilst the hotel debt market wishes to be supportive it remains highly cautious about extending additional leverage. This will put pressure on the whole capital stack and in particular owners/operators, just as there is cause for optimism in the re-opening of the wider hospitality sector.

Whilst it may feel a bold or risky move to have frank conversations this early into the recovery, it is vital that all of the stakeholders to a hotel position are committed now to the journey both strategically and financially.  In the absence of such alignment, problems will simply be stored up for the future and the opportunity for some stakeholders, owners/operators in particular, to protect economic interests will be lost.