NEWPORT NEWS, Va.—Mumford Company, a full-service hospitality brokerage advisory firm since 1978, announced its 2016 results and forecasted 2017 to be another solid year. They reported transaction value holding steady with average deal size continuing to grow considerably over past several years with an overall increase of 4%, price per room remained constant and cap rates rose slightly by .02 to an average 10.16%. The firm continued its growth with the addition of Ryan Patterson in its Dallas office and completed a milestone 1000th deal in its 39-year history.
“Market conditions are continuing to change and owners are constantly evaluating where we are in the cycle to determine if it is the right time to divest of non-core assets,” said Ed James, principal of the Mumford Company. “Mumford Company currently has an active listing inventory and an extensive list of deals either under contract or negotiation. The challenge in today’s market remains to meet buyer demand for newer, better branded, limited and full-service properties.”
Mumford Company was established in 1978 to provide top quality hotel brokerage services and remains committed to this core business philosophy. The company represents sellers of most major brands in markets throughout the country. The firm has an experienced sales team in regional offices across the country including Newport News, Va., Atlanta, Ga., Chicago, Ill., Dallas, Texas, and Washington DC. Its track record of success for buyers and sellers has made Mumford Company a leader in the sale of mid-market and economy hotels.
“Debt and Equity continue to be readily available for transactions with solid fundamental operational measurements. The recent rate increase should have little impact on debt demand though this will change if further increases occur,” said Steve Kirby, principal of the Mumford Company. “This combined with increased buyer demand specifically in the mid-market, limited service and economy sectors will help properties continue to trade at a brisk pace for the remainder of 2017. Owners will realize that, though top lines likely will continue to remain flat, bottom lines will not be driving more inventory to the marketplace.”