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.