Second Quarter 2012: The Trend Is Our Friend
Liu, Crocker H.; Nowak, Adam D.; White, Robert M. Jr.
The Cornell Hotel Indices reveal that the hotel industry has finally turned the corner with both large and small hotels participating in the price recovery. In our previous publication, we noted that prices for large hotel transactions ($10 million or more) began their recovery several quarters ago, indicating a flight to quality. What’s new this quarter is that small hotels (under $10 million) have also turned the corner, while sales of high-price properties have actually faded a bit. Our repeat sales hotel index (RSHI) likewise confirms this trend. In this paper, number 3 in our series, we also introduce the Hotel Valuation Model.
Cornell; hotel valuation models; interest rate spread; commercial real estate; HOTVal
Supplemental File: Hotel Valuation Model (HOTVAL). We provide this user friendly hotel valuation model in an excel spreadsheet entitled HOTVAL Toolkit as a complement to this report.
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