Latest Survey Shows Increase in Investment Rates

COLUMBUS, OHIO, UNITED STATES, October 11, 2022 /EINPresswire.com/ -- The latest hotel investor survey indicates discount rates and capitalization rates generally increased from our last survey. This is not surprising, despite a continued recovery in most hotel markets, given the strong Fed action which has led to the highest treasury rates in more than a decade, with further upward movement anticipated. This has, in turn, presurred cap rates, given the implied hotel lending rates are now approaching or exceeding negative leverage in some situations.

Recovery continues to be expected in the hotel market, as demonstrated by strong ADR growth. However, compared to last quarter, the ADR growth expectations have slowed for both full-service and limited-service hotels. Further, with decades high inflation, expense growth expectations have accelerated, which could potentially squeeze NOI recovery.

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”.

Peter P Hathaway
US Realty Consultants
+1 614-695-4438
phathaway@usrc.com

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