Hotel Capitalization Rates Weaken Further
Expectations of Economic Fundamentals Also Fall
The direct capitalization rate for full-service hotels of 9.8% in the current survey is 160 basis points higher than the average for the Mid-Year 2008 survey.
The complete Winter 2009 survey, including data on capitalization rates, discount rates, income and expense growth expectations, marketing time, debt parameters, 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, CHME 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 career with Hyatt Hotels and Resorts, and has been a hotel consultant since 1992. He can be reached at 614-221-9494 (ext 150) or at firstname.lastname@example.org.
Jeffrey H. Walker, MAI, CHME
Principal and Managing Director