Top 5 U. S. Markets for Hotel Investments in 2014

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If you’re considering the purchase of a hotel investment, these 5 cities show positive trends in retail growth, which indicates more discretionary income, and are among the top 15 markets for higher occupancy rates YTD.

1. Los Angeles
2. Houston
3. New York
4. Seattle
5. Orlando

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While Millennials are showing traction towards indie hotels (for a unique experience) the demand is higher for branded hotels. Demand is above supply with the highest growth shown in the upper upscale segment:

Midscale: 48.8%
Upper Midscale: 43%
Upscale: 46%
Upper Upscale: 51%

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The long view: hotels have shown 10+ percent NOI growth for the past 5 years in a row and an average 20% ADR growth since 2010. The arbitrage between Cap rates & the 10-Year Treasury is about 500 bps, and is expected to continue into mid-2018, making hotels an attractive investment!

If you are interested in a feasibility study of a specific market segment, please contact me for a proposal.

Sources: Marcus & Millichap Research Services, Smith Travel Research, LVCVA

Image Source: Freeimages.com
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About iWriter

Bio: My favorite song is "My Way" by Frank Sinatra; it is a good summary of how I have strived to live my life. I've been many things, worn many hats, and have walked in many shoes. I love to listen to music for inspiration, like 80s pop/rock, 90s grunge music, urban country, Frank Sinatra, Dean Martin, Bing Crosby, Louis Armstrong, Ella Fitzgerald, Billie Holiday, Andrea Bocelli, Lara Fabian, Laura Pausini, Lana Del Rey, Ferras, Keiko Matsui, Chris Botti, Michael Buble and many contemporary Christian artists. You're likely to glean some insights into the enigma of my mind if you dare to read my work. But, ye be warned - once you are drawn into my wake, you may not be able to steer your ship out of the current. ;-) Education: AA, BS, MS, Candidate for Juris Doctor (2019)
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One Response to Top 5 U. S. Markets for Hotel Investments in 2014

  1. Pingback: Top 5 U. S. Markets for Hotel Investments in 2014 | BLUME BOSTON HOTEL REAL ESTATE NEWS

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