Hurricane Irma: South Florida hotel investors face potential damage

Mandatory evacuations in the Florida Keys will result in immediate losses for hotels

Sep.September 06, 2017 01:30 PM

Hyatt Regency Pier 66

Along with residents and small businesses, major lodging real estate investment trusts could also be slammed by Hurricane Irma this weekend if the storm makes landfall in South Florida or passes close by.

Hyatt Hotels Corp. has the greatest exposure to storm damage. About 7 percent of its rooms are in threatened areas, The Wall Street Journal reported.

Wells Fargo Securities analysts told the Journal that lodging REITs including Ashford Hospitality Prime Inc., Hersha Hospitality Trust, DiamondRock Hospitality Co., RLJ Lodging Trust, and Southerly Hotels have around 10 percent of their rooms in the areas that the currently offshore Category 5 storm could hit.

Officials in the Florida Keys have already issued mandatory evacuations to begin Wednesday that will result in monetary losses from canceled trips, The Wall Street Journal reported.

BTIG Equity Research analysts also noted that LaSalle Property Group, owner of two Key West hotel properties with 354 rooms, could face a drop in revenue due to evacuations. However, Gulf Coast Property managers told the Journal that while they expect tourists to make hotel cancellations, they also expect residents seeking shelter to check in to the vacant rooms.

As South Florida braces for Hurricane Irma’s 125 to 185 mile-per-hour winds, 25 construction cranes in Brickell and Downtown Miami pose concerns for residents planning to weather the storm.  [WSJ]  Grace Guarnieri

Related Articles

Daily Digest Miami

How Epstein hid ownership of second island, CK Holding Group buys Miramar retail: Daily digest

Daily Digest Miami

Homebuyers who bought after the market crash have made billions, Terra closes on $185M construction loan: Daily digest

(Credit: Getty Images)

All eyes on cranes during Hurricane Dorian

State report finds open gas valve fueled building explosion at Plantation shopping center

Bayside Marketplace is planning another high-rise entertainment venue with a view

Construction of downtown Hollywood high-rise may start soon

Florida Keys after Hurricane Irma (Credit: Getty Images)

Florida Keys homeowners could get a big cash buyout

South Florida firm, partner acquire Tampa office building for $29.4M