There are many reasons for the proliferation of branded residences, including the fact that U.S. investors overall are awash with cash. Since the Great Recession, basic money supply in the U.S. has increased from approximately $1.6 trillion in January 2009 to approximately $20.7 trillion in April 2022, according to the Federal Reserve Bank of St. Louis. Many cash-flush Americans have sought to invest in assets that can serve as stores of value, such as well-located and well-sponsored second residences or vacation homes. To the extent that the residence is eligible to participate in a hotel rental program, U.S. investors can generate revenue to offset some of their carry costs.
LINKS
Read “Why Hotel-Branded Residential Projects Continue to Proliferate,” authored by Michael J. Sullivan for Hotel Business.