First Quarter 2013: Is the Trend Our Friend?
Liu, Crocker H.; Nowak, Adam D.; White, Robert M. Jr.
The Cornell Hotel Indices reveal that the hotel industry is continuing to experience positive price momentum for small hotels with a continued weakening in price for larger hotels. Hotel properties also exhibit a narrowing premium relative to other property types, signaling lower perceived default risk for hotel properties. Our index of business confidence suggests that we should expect to see a reversal in the prices for larger hotels in the near term given a strengthening in the economy. We also expect rising prices for smaller hotels and our repeat sales index going forward based on the NAREIT Lodging/Resort index, the Architecture Billing Index, and the moving average trendline for the Consumer Confidence Index. This is paper number 6 of the index series.
Cornell; hotel prices; business confidence; NAREIT lodging/resort index; architecture billing index; 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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