Hotel Valuation Trends for the U.S. Lodging Industry
HVS presented their annual Hotel Valuation Trends for the U.S. Lodging Industry at the NYU Hotel Investment Conference this month.
Their data suggests:
2011 US per room values to grow by 28%
2012 US per room values forecasted to grow by 25%2011 per room average value is $84,000
2015 forecasted average value of a hotel room is $151,000
Although you may have missed the bottom of the market. This data shows that it still clearly an excellent time to buy. If you are building a new hotel property try to open by 2013-2014 to stabilize the property by 2015. If you are open on which markets to pursue deals in, the below is a guide to the top performing markets by percentages and also on a per room basis.
2011 value change in top 10 markets:
1 San Francisco $51,000
2 Oahu $41,000
3 New Orleans $34,000
4 San Diego $34,000
5 Chicago $26,000
6 Miami $25,000
7 Phoenix $25,000
8 Orlando $23,000
9 Anaheim $22,000
10 Los Angeles $22,00
2011 Value change as a percentage in top 10 markets:
1 Detroit 55%
2 Phoenix 45%
3 Cleveland 43%
4 Tampa 41%
5 Richmond 39%
6 Orlando 35%
7 New Orleans 35%
8 Philadelphia 29%
9 Jacksonville 28%
10 United States 28%
Per room value forecast (2010-2015) top 10 markets:
1 San Francisco $233,000
2 Oahu $185,000
3 New York $180,000
4 San Diego $128,000
5 Phoenix $126,000
6 Las Vegas $118,000
7 Chicago $114,000
8 New Orleans $114,000
9 San Antonio $105,000
10 Dallas $103,00
Top 6 Buy markets:
San Francisco
Oahu
Phoenix
New Orleans
Las Vegas
New York
Source: HVS - Hotel Valuation and Transaction Trends for the U.S. Lodging Industry
New York City Ranks