Posted in Real Estate Investing

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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Author:

John holds four degrees and two decades of technical education, and has extensive experience in the fields of real estate property valuation, mortgage finance, and home sales, and is the Broker-Owner of Coleman Tanner Realty 🏡 in Florida. John was recently admitted into the NYU film school’s 1-year online certificate program in Film & TV Essentials, as well as completed the 14-Day Filmmaker Academy by the legendary tv commercial gurus, Paul Xavier and Anthony Gallo. 🎥 He plans on shooting social media video commercials that documents and highlights the journey to success of many high performance attorney entrepreneurs, as well as lead an in-house film production company for his real estate practice, Coleman Tanner Realty. 🎬 Lastly, John aspires to self-produce independent films that will be a hybrid of the “film noir, murder mystery genre” and something new, futuristic, and aesthetically appealing to modern day film enthusiasts. (Ladies, he also enjoys romantic comedies and dramas too, - and he wrote a romantic novella titled Faithfully (available on Amazon) - so stay tuned!) When he’s not 🖥 online studying film production and marketing techniques, or watching movies and TV shows on the tube 📺 for inspiration, 🎼John also enjoys playing the guitar 🎸 and piano 🎹 in his free time.

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