The U.S. hotel industry is approaching a significant crossroads. In 2013, hotel valuation fundamentals signal a strong positive trend in transaction volume as well as in new hotel development. HVS Valuation experts acknowledge that hotel values peaked in 2006 but declined rapidly for the next three years. In 2010, the recovery began. Today, hotel values have returned to their 2006 levels and consequently, this has resulted in jump starting what will be a noteworthy boost in hotel transactions.

Where are we in this transaction cycle? What signs indicate a shift back toward positive values?

To date this year, U.S. hotel values have reached their 2006 peaks and, therefore, transaction activity is expected to escalate rapidly. In addition, hotel values have surpassed replacement cost in most sectors, making new development more feasible.

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