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

 
By: Samuel Trotter
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