The current reduction in flights due to the 2025 Government Shutdown is already having a negative impact on revenue of many hotels and the hospitality industry, whether parts of a chain or individual locations. It is more than canceling trips. Factors like re-booking flights for a day later or having to depart a day earlier also take their toll on destination revenue.
You may be wondering what this has to do with real estate marketing, and I'm here to tell you that the answer is "plenty", especially for developers, investors, and brokers. The shutdown is going to end at some point, hopefully very soon. When it does, estimates are it could take weeks before airline travel is back to normal. This is happening during Q4 of 2025, in time to show a less positive revenue trend for the quarter and consequently for the entire year, despite earlier rises in travel dollars.
As a real estate investor or developer, right now could be an ideal time to make an offer on an existing facility, especially when lost revenue could serve to reduce the value of an appraisal. (See the office building lending crisis for examples.) Appraisals do not take temporary circumstances into account. By the end of this year, some hotels could be appraised for six or seven figures less than they are "really" worth. A broker representing a buyer or an institutional buyer might be able to step in and pounce while appraisal prices are lower than they should be.
Meanwhile, suppose your team is involved with what really is a struggling hotel property and you want "out". Right now is the ideal time to spread the word, because a lot of other hotel numbers will be going "down" at the same time. Perhaps your revenue is not dropping as badly as many destination hotels and resorts for Q4.
Of course, it takes more than a couple of days to perform the research necessary to identify these opportunities, produce the offer (or selling package) and prepare to negotiate quickly (before the impact of the shutdown ends), and be ready with an operational plan.
Those that know how to react to a situation and plan ahead could gain a lot for years to come if they have the right research, planning, and preparation in place. Meanwhile, those that don't think they need a research person on their team will let still another long-term profit opportunity go by unnoticed. Let's discuss how my personal 30+ years of researching, marketing, and planning can put you in the best possible position!
https://apnews.com/article/flight-cuts-government-shutdown-airlines-c21ffa6c3d55e3d2fe7f53702112727b
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