Hotel Capitalization Rates on the Rise

With limited sales transactions and investment and refinancing activity, hotel capitalization rates and values are challenging to gauge in today’s marketplace. Yet, the need to know where rates of return and values lie remains an important question for hotel investors, lenders and assessors. This article updates hotel capitalization and discount data that was presented in previous articles on hotel capitalization rates (see: Allure of Hotel...

Finance USA & Canada United States

Suzanne R. Mellen, MAI, CRE, FRICS, ISHC, is the Senior Managing Director – Practice Leader of HVS. She has unparalleled experience, having appraised thousands of hotels, gaming assets, and related real estate throughout the world over the past 40 years. She specializes in complex hotel and casino feasibility issues.

HVS is the world's leading consulting and services organization focused on the hotel, restaurant, shared ownership, gaming, and leisure industries. Established in 1980, the company performs more than 2,000 assignments per year for virtually every major industry participant. HVS principals are regarded as the leading professionals in their respective regions of the globe.

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