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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