COVID will change CRE forever

Pebblebrook Chairman Jon Bortz sees big changes coming to the hotel industry:

  • With customers becoming more comfortable with ordering delivery or curbside takeout, hotel food & beverage will likely go away.

  • Turndown service, mini-bars & room-service were already on their way out. Covid-19 could make this a certainty.

  • The hospitality industry likely won't fully re-open until July. Furloughed workers will prefer taking advantage of the CARES act unemployment program until it ends in July, despite any medical breakthroughs.

Manhattan-based Bruce Eisner has this to say about development:

  • "Luxury has to exist with the 'new-normal' we're returning to and it's our job as developers to figure out what that is..."

  • While things are likely to return to normal in the long-run, in the short-run it will be all about promoting confidence in consumers, residents & patrons. Improved cleaning methods & hand sanitizer will become common practice in all real estate applications.

#Covid19 #Hospitality #Hotel #Development #Eisner #Pebblebrook

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