SOURCE: US Realty Consultants

US Realty Consultants

September 21, 2015 06:30 ET

Hotel Capitalization Rates Continue to Be Strong and Declining According to USRC Hotel Investor Survey Mid-Year 2015

COLUMBUS, OH--(Marketwired - September 21, 2015) - US Realty Consultants, Inc. has released its Mid-Year 2015 Hotel Investor Survey, which the company has provided for over twenty years.

The results of our Mid-Year 2015 Hotel Investor Survey continue to be strong, even compared to those reported in our Winter 2015 survey, with full-service capitalization rates declining modestly. Moreover, discount rates, or anticipated yields, have further compressed to a greater extent, and the current full-service discount rate is now at its lowest point in the twenty-plus year survey history. This quarter, limited-service hotel discount rates saw little or no movement compared to full-service hotels.

Overall going-in capitalization rates were also essentially flat for limited-service hotels, but declined 20 basis points for full-service hotels. Overall yields, or discount rates, dropped a sizable 50 basis points for full-service hotels, and were flat for limited-service hotels this survey.

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.

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