Moody’s Analytics has enhanced its core commercial real estate (CRE) solution, the Moody’s Analytics REIS® platform, with data and analytics on hotel properties, bringing customers robust insight as that sector faces a tough test amid headwinds from COVID-19. Ongoing travel restrictions, consumer caution, and economic uncertainty cut output in the leisure and business travel sector by 47% in the second quarter of 2020 compared to last year, according to the Bureau of Economic Analysis.
Moody’s Analytics expects that hotels will benefit from a release in pent-up demand for vacations once an effective coronavirus vaccine is widely distributed and adopted, but business travel is unlikely to return to prior levels unless corporate travel budgets recover from the downturn. Hotel occupancy will likely lag the US economic recovery. Although the hotel occupancy rate climbed from 38% in the second quarter of 2020 to 43% in the third quarter, Moody’s Analytics does not expect it to exceed peak 2019 levels until 2026.
“The addition of hotel data is an important complement to our existing datasets and comes at a crucial time to support CRE market participants focused on the hospitality sector,” said Cristina Pieretti, Managing Director of CRE Solutions at Moody’s Analytics. “We are committed to evolving our CRE solutions with the most relevant data and tools from across the Moody’s organization, and from third parties, to help inform customers’ lending and investment decisions.”
Customers of the Moody’s Analytics REIS platform can now perform in-depth analysis of seasonal patterns and volatility in the hotel sector with access to data on 34,000 US hotels from the Kalibri Labs hotels database, as well as more than 20 years of relevant historical commercial mortgage-backed securities data from Moody’s Analytics. Macroeconomic forecast variables from the award-winning Moody’s Analytics economics team underpin six years of forecasts for key metrics such as revenue per available room, occupancy rates, and room rates provided by a dedicated CRE economics team.
“We are proud to offer more CRE market participants access to our database through this collaboration with Moody’s Analytics,” said Cindy Estis Green, CEO of Kalibri Labs. “Now more than ever, hotel owners, operators, and investors need advanced metrics and next-generation benchmarking that enable more effective commercial strategies.”
The REIS platform is a cornerstone of the growing suite of Moody’s Analytics technology-enabled CRE solutions for commercial lenders, real estate investors, brokers, and developers. Moody’s Analytics CRE solutions harness expansive data and analytical expertise from across the Moody’s organization to deliver integrated analysis of new and traditional metrics for better decision-making as the CRE marketplace evolves.
About Moody’s Analytics
Moody’s Analytics provides financial intelligence and analytical tools to help business leaders make better, faster decisions. Our deep risk expertise, expansive information resources, and innovative application of technology help our clients confidently navigate an evolving marketplace. We are known for our industry-leading and award-winning solutions, made up of research, data, software, and professional services, assembled to deliver a seamless customer experience. We create confidence in thousands of organizations worldwide, with our commitment to excellence, open mindset approach, and focus on meeting customer needs. For more information about Moody’s Analytics, visit our website or connect with us on Twitter or LinkedIn.
Moody's Analytics, Inc. is a subsidiary of Moody's Corporation (NYSE: MCO). Moody’s Corporation reported revenue of $4.8 billion in 2019, employs approximately 11,400 people worldwide and maintains a presence in more than 40 countries.
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