Hotel Capitalization Rates Stabilize as Market Forces Create State of Equilibrium

Hotel capitalization rates are stabilizing due to the counter balancing forces of a healthy transaction market, a shortage of product for sale, the low cost of capital and the slowing of net income gains. This article discusses these forces and presents data illustrating these trends. Counter balancing forces at work in the hotel investment market have created a state of equilibrium that has stabilized capitalization rates for the near term.