Wednesday

Hotel Cap Rates Hold Firm as Investors Change Approach

Loopnet CRE - Hotel capitalization rates are holding comparatively firm as the sector's expected recovery from a deep downturn in operating fundamentals is changing how investors value properties.  Hotel investors are more inclined to consider projected performance versus trailing 12-month activity that has been dismal for most properties, according to some of the sector's top brokers and analysts. Investors also are more prone to base bids on the cost to develop a similar property.  That has contributed to hotel capitalization rates being kept in check, when compared to rates for other sectors.

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