COLUMBUS, Ohio—U.S. Realty Consultants, Inc. has released its Mid-Year 2017 Hotel Investor Survey, which shows strength and stability in the hotel sector, but with a dose of caution regarding future growth.
Discount rates were largely flat since the last survey in early in 2017, with full-service hotels increasing a modest 20 basis points, and limited-service hotels improving by 20 basis points. Full-service hotel capitalization rates decreased by a modest 10 basis points to 7.5 percent, and limited service hotels declined by the same margin.
While similar to the results last survey, ADR growth expectations are down significantly from a year ago. For both full-service and limited-service hotels, overall ADR growth expectations are only slightly higher than expense growth expectations.
