Hotel Capitalization Reflect Cautious Optimism

COLUMBUS, OH--(Marketwired - March 29, 2017) - US Realty Consultants, Inc. has released its Winter 2017 Hotel Investor Survey, which the company has provided for twenty-five years.

The results of our Winter 2017 Hotel Investor Survey continue to show remarkable resilience and optimism in the hotel sector. Discount rates were slightly stronger than the last survey (Mid-Year 2016), and in fact now reflect record lows for the full-service sector. However, full-service hotel capitalization rates increased by a modest 10 basis points to 8.1%, while limited-service rates increased by 30 basis points.

While similar to the results last survey, ADR growth expectations are down significantly from a year ago. For both full-service and limited-service hotels, overall ADR growth expectations are only slightly higher than expense growth expectations.

The complete survey, including data on capitalization rates, discount rates, ADR and expense growth expectations, marketing time, 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, CRE 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 early career with Hyatt Hotels and Resorts, and has been a hotel consultant since 1992. He is involved with hundreds of hotel analyses annually for national lenders and major institutional clients, and is a frequent speaker at national conventions. He can be reached at 614-221-9494 (ext 150) or at jwalker@usrc.com.