Shelborne South Beach and Seagull Hotel (Shelborne, Google Maps)
The hotel market was among the hardest hit sectors of the coronavirus pandemic in 2020, resulting in many owners scrambling to survive.
After many hotels laid off the majority of their staff in March and subsequent months, a number of properties remained closed until the winter. And some have yet to reopen, as domestic and international travel remains low.
In South Florida, the pandemic led to forbearance agreements with lenders, some foreclosure filings, new equity investors, out-of-court UCC foreclosures, merging of ownership, and properties hitting the market. For properties marketed for sale – either on the market or quietly among brokers – pricing is another issue, as many sellers and opportunistic buyers can’t agree on valuations, experts say. As a result, few hotels traded in 2020, and the two largest deals – each for $120 million – closed in January, before the pandemic caused a major disruption to