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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The Dynamic Nature of the Hospitality Industry

Whatever impresses clients today will be considered boring tomorrow. Take an old “Art Deco” hotel and modernize the interior, like this lobby at The Essex House in South Beach, and you will have reinvented yourself for the present time.

20140711-142048-51648920.jpg By scanning the remote environment for emerging trends, you can pinpoint what customers want and reinvent yourself time & time again. Because the only way to thrive in an overly-saturated hospitality market, like South Beach, is to evolve. The only thing you can always expect to be constant in life – is change.

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A hilarious grammar lesson from puppets

A hilarious grammar lesson from puppets.

 

I’m sharing this because I see these errors all the time! Too funny.

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Cautiously Optimistic Consumers Support Modest Retail Gains; Fed Tapering Will Remain a Wildcard

biz manLittle improvement, but the way to journey from point A to point B without tripping is to take one step at a time.

The Investment Real Estate Research Blog

August 15, 2013

  • Retail sales advanced at a tepid pace in July as consumers maintained a cautiously optimistic stance in the face of mixed economic news. Limited risk tolerance and fragile psyches remain a hallmark of the recession, reiterating that a transition to a consumer-led recovery may still be slow in forming. The positively performing but still-soft retail market will likely weigh on the Fed’s timing as they consider decreasing their infusions into the capital markets. Speculation that tapering will soon begin has already pressured Treasury rates, increasing the 10-year by more than 100 basis points over the last two months. These trends temporarily unnerved the mortgage and auto markets, but rising home values and the strengthening employment market will offset these forces as the “wealth effect” gathers momentum and begins lifting consumption through the remainder of this year.

  • Total retail sales advanced 0.2 percent in July as auto dealers…

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Option One Realty Group – Featured on Houzz

Miami is such a beautiful place to "live, work, play"

Take a look at the amazing ideas you can incorporate into building your ideal home.

Click on the green button below the illustration to see our design book.

miami

Remodeling and Home Design
Miami Home Professionals
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June – a slow month for Home Sales

 (increasing mortgage rates) “…may have taken some of the steam out of the market.”

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After hitting a 3.5 year record high, home sales took a dip of 1.2% in sales to an annual rate of 5.08 million home sales in June.  According to Lawrence Yun, Chief Economist for the National Association of Realtors, increasing mortgage rates “may have taken some of the steam out of the market.”

Nonetheless, there is still a lot of demand in most US cities. The problem lies in the most expensive regions: Hawaii, California, and the New York City metro area:

“We’re still dealing with a large pent-up demand,” he said. “However, higher mortgage interest rates will bite into high-cost regions of California, Hawaii and the New York City metro area market,” says Yun.

Foreclosures and short sales have taken a back seat in the market, accounting for 15% of existing home sales. With these distressed sales clearing the market, home sellers can expect a greater return on their properties as the median home price has increased 13.5% since June, 2012 – a consecutive gain in median home prices for 16 months!

If you are thinking of selling, there is a lot of demand for what buyers consider “good” homes and the conditions (demand) is continually improving, aside from the interest rate increase. But seriously, were we thinking that they’d actually stay that insanely low forever? Seriously? 

Source: Money.CNN.com

http://money.cnn.com/2013/07/22/real_estate/home-sales/index.html?section=money_realestate&

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Miami Lifestyle

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Ever wonder what it’s like to live in downtown Miami? Want to travel here but are limited by financial resources? Well thanks to online videos you can take a virtual tour practically anywhere in the world, and the best part is – it’s practically free (aside from the cost of an  internet connect and a device: pc, smartphone, etc.)

1. Let’s take a trip downtown.

2. Let’s have a look at some new construction coming to Brickell.

3. Not only is Miami already a very exciting place to be, but it is going to become even more amazing! Here’s a look at the $10 Billion Dollar Boom Coming to Miami!

  4. While we’re downtown, let’s go see Bayside Marketplace.

5.  A trip to Miami wouldn’t be complete without visiting the world renowned South Beach!

For more views of this fun and exciting city, visit my real estate image board at http://www.pinterest.com/johnwtanner

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Porsche Design Tower Miami

Porsche Design Exteriors

Imagine living in a condo where you have a private pool built into your balcony. The Porsche Design Tower is redefining the luxurious pleasures of South Florida living.

Click here to learn more about the Porsche Design Tower

 

 

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1 More Property for Good Measure – 3 x’s a Charm!

1 More Property for Good Measure - 3 x's a Charm!

This one’s for the Marina Aficionados!

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Open House Today!

Open House Today!

Old World – Surrounded by New Lifestyle

(This is the neighborhood where my character America Riley lived…Faithfully)

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