"Although occupancies are down on a year-over-year basis, owners of luxury product have significant equity in today's projects," says Webb, a hotel industry student for 30 years. "There are little signs of panic and no signs whatsoever of any panic within the marketplace."
He concedes prices will be affected if occupancy softness continues but senses "most disposition will occur in an orderly fashion." He is confident "dumping is improbable."
Webb says he hasn't heard of any luxury or mid-price property being placed on the selling block so far. But, he says, "there are some early signs that more highly leveraged properties in secondary locations may be in trouble."
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