Hotels were hit hard by covid. With less travel, there was less business, and therefore lower valuations. Some markets, heavily dependent upon tourism or foreign business travel, suffered bankruptcies surprisingly quickly. Only hotbeds of in-migration like Austin continued constructing hotels.   

Now, hotels around the country are recovering. Hotels are celebrating an occupancy almost at 2019 levels (60.6% compared to 2019 at 65.6%). With travel restrictions fading, hotels across the spectrum are seeing an upturn. Still, they are hampered by labor shortage and passing costs along to travelers. A large influx of foreign workers, coupled with a large influx of foreign tourists is expected to alleviate the woes in large gateway cities.

Recovery is stronger in some spots. Sunbelt cities, with outdoor events are doing better than colder climates. Tertiary markets who have more moderate prices and depend upon arrivals driving are also doing better.  

Austin continued flying high. After a dispute over whether it was essential, construction of downtown towers continued through the shut down. Downtown has largely recovered here. Today, Austin is celebrating the Marriott’s new 613 room hotel in the central business district, one of several downtown hotels with more than 500 rooms.

https://www.marcusmillichap.com/research/research-brief/2022/06/research-brief-june-hospitality

https://www.bizjournals.com/austin/news/2022/06/03/austin-is-making-a-return-following-covid-19.html