Airbnb, New York, Advisor discussed on P&L With Pimm Fox and Lisa Abramowicz
Joining us. Tell us a little bit about J L L and its participation in the hotel industry because many people look at J J L L as brokers, but they don't know that you've got a big remain when it comes to. The hospitality industry. That's right. So first of all thank you for having me in terms of what jail L dos. You are. Absolutely, correct. We are investment advisor. So our investment sales where we represent sellers on an exclusive basis as bread and butter. But in addition to that, we also facilitate financing, and we have a very big strategic advisory and asset management division. Okay. So right now, given sort of some of the softening that we're seeing in commercial real estate prices, given the fact that we did see that glut of hotels in New York City where are you seeing the biggest opportunities for your clients? He'll so definitely New York. We are now in the midst of recovery story. This is a surprise because New York was number one territory that people said it was over bell overbuilt with hotels. It's listen. It's the most resilient market worldwide. We have CNA tremendous amount of inventory commend over fifty percent of new room supply you and I were speaking earlier, there's also the shadow inventory that is being propelled. Airbnb but having said that all of the new rooms have been absorbed. Demand is at an all time high and we're finally seeing recovery the bottom line. Do you see that there's going to be a consolidation as this recovery takes hold because there are all these new concepts the live work concept? This has been something for example, the student hotels offering a both accommodations, but also student housing and workspaces. Absolutely. You know, like with every other industry bigger is better. So we are definitely expecting more consolidation on the traditional operators side. But you know to the point that you just raise their conversion right now towards flexible usage of real estate. And so yes, Soudan accommodations look at what we works as doing. They have we work we leave. We stay. Shortly. We play everything you've seen island hair care, which I thought was great. Can you imagine if they're at childcare and every office anyway, moving right along he'll I'm wondering about Airbnb mentioned it, but what about some of these profound disruptions the entire industry how much of the Ardy affected valuations? What do you expect going forward? Listen, no one's been able to measure, the direct impact of Airbnb toss metality now one of the big impacts that we've had in New York is typically before Airbnb we had one hundred eighty sold out nights when that happens now, the amount of supply of Airbnb the faucet just turns on the top turns on so you could have anyone night from twenty to forty thousand rooms just come in the market now, there's more regulation from from the city from the public side looking into Airbnb and to be on. It's been a great wakeup call for the hospitality industry. You know, this Rupp shin is good. We need to you know, move on and people are no more focusing exp. Variances, which is were Airbnb cells. Can we just go through some of the major markets because you have a lot of international experience. You ran the J ale business out of Madrid where where the best markets right now. Our investors are focused on the markets with the most liquidity. So in the United States at your New York's that'd be your San Francisco LA people of Hawaii right now in Europe. It's all about the U K. It's london. It's really interesting, despite Brexit, so you know, with the development of the pound you have tourism on the rise so hotels her actually doing quite well, western Europe is extremely important. There's investors have a resort theory as well. So Mediterranean Spanish resorts to be more specific. And then Hong Kong and Singapore, definitely top picks. I'm just wondering we do talk a lot here about the sort of geopolitical backdrop here of rising tensions and concerns about borders. And I'm wondering how that has affected tourism if at all and shifts the landscape for hotels and. Metality to be honest. At least we have not seen a major decrease for major impact on on tourism. In fact, we're at all time record highs. I think from an investment perspective. It does play a very big role. So, you know, old chips are in the US table right now, we have this wrong, est. Macroeconomic fundamentals had of any other mature market in the world..