Hundreds of Distressed Hotels Decrease in Reappraisal Value

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2,500 distressed hotel properties were recently analyzed by The Business Journals.  Of these properties, 500 were recently reappraised, and 90% saw a decrease in value.  One property in Kansas that falls into this category is the DoubleTree by Hilton Kansas City.

This hotel was originally appraised at $40 million, which dropped by 45.5% to $18.2 million.  It lost $1.2 million in 2020 due to the pandemic and $365,000 in 2021.  Occupancy between 2021 and 2022 only increased by 7%, going from 22% to 29%.

In the same analysis, The Business Journals also found that 52 properties’ appraised values increased beyond their pre-pandemic appraisals.  The Courtyard Overland Park is one example of such a property.  This hotel’s appraised value increased from $12.8 million to $14 million.

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