By Jim Butler and the Global Hospitality Group®
Hotel Lawyers | Authors of www.HotelLawBlog.com
12 October 2010
Hotel Lawyer with a cold splash of realism from new economic data! If you are not ready for the "long haul," it is time to reassess your strategies . . .
The hotel lawyers of JMBM's Global Hospitality Group® believe investors, borrowers and lenders should assess their options and develop their strategies based on realistic assumptions and the latest hard data. If you haven't seen the latest, this is worth looking at.
On October 6, 2010, the International Monetary Fund or IMF released its latest appraisal of the situation for real estate on a global basis (in a report entitled World Economic Outlook October 2010 Recovery, Risk, and Rebalancing). The conclusion was that the prospects in the global real estate sector are "dismal," with a downturn that could last eight years.
"Especially in the United States, given the limited success of mortgage modification programs and the shadow inventory from foreclosures and delinquencies, this has renewed fears of a double dip in real estate markets. A lot will depend on the path of economic recovery: if employment creation remains low, risks of a double dip in housing naturally increase," the IMF said.
But the IMF data is not all that is new. Let's take a look at some other significant data points, including those from Fitch, Deutsche Bank and Atlas Hospitality.