Hotel Capitalization Remain Strong

According to USRC Hotel Investor Survey Mid-Year 2017


COLUMBUS, Ohio, Sept. 19, 2017 (GLOBE NEWSWIRE) -- US Realty Consultants, Inc. has released its Mid-Year 2017 Hotel Investor Survey, which the company has provided for over twenty-five years.

The results of our Mid-Year 2017 Hotel Investor Survey continue to show strength and stability in the hotel sector, but with a dose of caution regarding future growth. Discount rates were largely flat since the last survey (Winter 2017), with full-service hotels increasing a modest 20 basis points, and limited-service hotels improving by 20 basis points. Full-service hotel capitalization rates decreased by a modest 10 basis points to 7.5%, and limited service hotels declined by the same margin.

While similar to the results last survey, ADR growth expectations are down significantly from a year ago. For both full-service and limited-service hotels, overall ADR growth expectations are only slightly higher than expense growth expectations.

The complete survey, including data on capitalization rates, discount rates, ADR and expense growth expectations, marketing time, and other data for both full-service and limited-service hotels, can be ordered through the company’s website at www.usrc.com, and clicking “Publications.”

Jeffrey H. Walker, MAI, CRE is Principal and Managing Director of US Realty Consultants. He is a 1985 graduate of James Madison University and has been involved in the hotel and restaurant industries since the 1970’s. He spent much of his early career with Hyatt Hotels and Resorts, and has been a hotel consultant since 1992. He is involved with hundreds of hotel analyses annually for national lenders and major institutional clients, and is a frequent speaker at national conventions. He can be reached at 614-221-9494 (ext 150) or at jwalker@usrc.com.