CoStar News - The Federal Reserve has raised interest rates for the first time in three years, and some hoteliers are worried about what that means for their ability to build hotels and grow their businesses.
The Federal Open Markets Committee voted unanimously today to raise the Federal Funds rate by 0.25 percentage points to a range of 3.75% to 4%. A majority of members put into their projections another rate increase before the end of the year.
There’s a lot of good real estate out there that works, and the financing needs to reset for today’s market, said Greg Friedman, managing principal and CEO of Peachtree Group, via email.
“I think raising rates is the right move for the Fed right now,” he said. “Paradoxically, that could actually help bring long-term rates down by showing the bond market the Fed is serious about inflation.”
