U.S. Gas Station & Convenience Store Update Q4 2024
- Posted by admin
- On April 4, 2025
- 0 Comments
- Rajesh Khairajani, US
U.S. Hotel Performance Q4 2024
- Posted by admin
- On March 21, 2025
- 0 Comments
2. Hotel Name: Residence Inn at Anaheim Resort/Convention Location: Anaheim, CA No. of rooms: 294 Sale Price: $179,300,000 Price per unit: $609,864 per unit Seller: T2 Hospitality Buyer: DCC Hospitality REIT, Inc. 
3. Hotel Name: Springhill Suites at Anaheim Resort Location: Anaheim, CA No. of rooms: 174 Sale Price: $124,000,000 Price per unit: $712,644 per unit Seller: T2 Hospitality Buyer: DCC Hospitality REIT, Inc. Source: CoStar
[/vc_column_text][/vc_column_inner][/vc_row_inner][vc_row_inner][vc_column_inner width='1/2'][vc_column_text]Q4 2024 Cap Rates
Average cap rates for U.S. hotels decreased by 42 basis points in Q4 2024 as compared to Q3 2024. The following table illustrates minimum, maximum, and average cap rates for U.S. hotels in Q4 2024 & Q3 2024.(Source: RealtyRates.com)
[/vc_column_text][/vc_column_inner][vc_column_inner width='1/2'][media animation='none' image='10770'][/vc_column_inner][/vc_row_inner][vc_row_inner][vc_column_inner][vc_column_text]Cap Rate Q4 2024 Q3 2024 Difference (bps) Minimum 5.91% 6.31% 13 Maximum 16.11% 16.34% 4 Average 10.45% 10.87% 12 Source: RealtyRates.com
[/vc_column_text][/vc_column_inner][/vc_row_inner][vc_row_inner][vc_column_inner][vc_column_text]Outlook
The U.S. hospitality property sector in 2025 is poised for a cautiously optimistic recovery, building on stabilizing economic conditions and renewed consumer confidence. Hotel occupancy rates are expected to climb steadily, with urban markets leading the charge as business travel rebounds to pre-pandemic levels. Leisure travel will remain a key driver, though growth may taper slightly as pent-up demand normalizes. Revenue per available room (RevPAR) is projected to rise modestly, supported by higher average daily rates despite competitive pricing pressures. Labor shortages, while easing, will continue to challenge operators, pushing investment in automation and staff retention strategies. Luxury and boutique properties are likely to outperform, capitalizing on travelers’ willingness to splurge on unique experiences. Mid-tier and budget segments may face tighter margins due to cost-conscious consumers and rising operational expenses. Sustainability initiatives will gain traction, with eco-friendly upgrades becoming a competitive edge for attracting younger demographics. Coastal and resort destinations should see robust demand, while secondary markets could lag without significant infrastructure investment. Overall, the sector’s outlook hinges on macroeconomic stability, with adaptability remaining critical for success in an evolving landscape.[/vc_column_text][vc_empty_space][/vc_column_inner][/vc_row_inner][/vc_column][/vc_row][vc_row][vc_column][vc_separator][/vc_column][/vc_row][vc_row][vc_column][vc_empty_space][/vc_column][/vc_row][vc_row][vc_column width='1/3'][block_title title='By'][/block_title][staff staff='3037' style='style_2'][/vc_column][vc_column width='1/3'][vc_empty_space][/vc_column][vc_column width='1/3'][vc_column_text]Share via
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U.S. Hotel Performance Q3 2024: Key Metrics, Transactions, and Market Trends
- Posted by admin
- On January 3, 2025
- 0 Comments
2. Hotel Name: The Ritz-Carlton O'ahu, Turtle Bay Location: Kahuku, HI No. of rooms: 463 Sale Price: $680,000,000 Price per unit: $1,468,683 per unit Seller: Blackstone Inc. Buyer: Host Hotels & Resorts, Inc. 
3. Hotel Name: Eau Palm Beach Resort & Spa Location: Lantana, FL No. of rooms: 309 Sale Price: $317,000,000 Price per unit: $1,025,889 per unit Seller: Blue Coast Capital, Inc. Buyer: Lawrence Investments, LLC 4. Hotel Name: Thompson Central Park, New York Location: New York, NY No. of rooms: 587 Sale Price: $308,000,000 Price per unit: $524,702 per unit Seller: Elliott Management Corp Buyer: Gencom (Source: CoStar)
[/vc_column_text][/vc_column_inner][/vc_row_inner][vc_row_inner][vc_column_inner width='1/2'][vc_column_text]Q3 2024 Cap Rates
Average cap rates for U.S. hotels increased by 12 basis points in Q3 2024 as compared to Q2 2024. The following table illustrates minimum, maximum and average cap rates for U.S. hotels in Q3 2024 & Q2 2024. (Source: RealtyRates.com)[/vc_column_text][/vc_column_inner][vc_column_inner width='1/2'][media animation='none' image='10464'][/vc_column_inner][/vc_row_inner][vc_row_inner][vc_column_inner][vc_column_text]Cap Rate Q3 2024 Q2 2024 Difference (bps) Minimum 6.31% 6.18% 13 Maximum 16.34% 16.30% 4 Average 10.87% 10.75% 12 Source: RealtyRates.com
[/vc_column_text][/vc_column_inner][/vc_row_inner][vc_row_inner][vc_column_inner][vc_column_text]Outlook
Hotel capitalization rate forecasts have been gradually increasing but are expected to peak in mid-to-late 2025. Historically, hotel capitalization rates were 100 to 150 basis points higher than office capitalization rates. This margin continued to shrink recently, and the forecast suggests that office capitalization rates will rise and peak in 25Q2. On the limited-service side, we hear from brokers that a change in ownership will likely trigger a renovation for those, i.e., most hotels that are well behind in their PIPs, roughly doubling the price per room of the expected sales price. This will make some deals infeasible.[/vc_column_text][vc_empty_space][/vc_column_inner][/vc_row_inner][/vc_column][/vc_row][vc_row][vc_column width='1/3'][block_title title='By'][/block_title][staff staff='3037' style='style_2'][/vc_column][vc_column width='1/3'][vc_empty_space][/vc_column][vc_column width='1/3'][vc_column_text]Share via
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US Hotel Performance Q2 2024
- Posted by admin
- On October 18, 2024
- 0 Comments
2. Hotel Name: Embassy Suites by Hilton Nashville Downtown
Location: Nashville, TN
No. of rooms: 506
Sale Price: $347,200,000
Price per unit: $686,166 per unit
Seller: Crescent Real Estate LLC
Buyer: Host Hotels & Resorts, Inc.
3. Hotel Name: Hyatt Regency San Antonio Riverwalk
Location: San Antonio, TX
No. of rooms: 630
Sale Price: $230,000,000
Price per unit: $365,079 per unit
Seller: Hyatt Hotels Corporation
Buyer: Sunstone Hotel Partnership
4. Hotel Name: 1 Hotel Nashville
Location: Nashville, TN
No. of rooms: 215
Sale Price: $182,800,000
Price per unit: $850,233 per unit
Seller: Crescent Real Estate LLC
Buyer: Host Hotels & Resorts, Inc.
Source: CoStar
Q2 2024 Cap Rates
Average cap rates for U.S. hotels decreased by 10 basis points in Q2 2024 as compared to Q1 2024. The following table illustrates minimum, maximum and average cap rates for U.S. hotels in Q2 2024 & Q1 2024.[/vc_column_text][vc_empty_space height='22px'][media image='10037'][vc_empty_space height='22px'][vc_empty_space height='22px'][vc_column_text]
Source: RealtyRates.com[/vc_column_text][vc_empty_space height='22px'][vc_column_text]Cap Rate Q2 2024 Q1 2023 Difference (bps) Minimum 6.18% 6.29% -11 Maximum 16.30% 16.35% -5 Average 10.75% 10.85% -10 Outlook
A forecast from Costar suggests that office capitalization rates will rise. Although hotel capitalization rates are expected to increase, they are also anticipated to have a smaller delta over office capitalization rates. Outside of transactions, the hotel commercial mortgage-backed securities (CMBS) market is wide open, and MCR and Blackstone, among others, were able to finance and refinance large portfolios at relatively attractive terms. Industry participants expect more to be refinanced as interest rates decrease.[/vc_column_text][/vc_column_inner][/vc_row_inner][/vc_column][/vc_row][vc_row top_padding='20'][vc_column css='.vc_custom_1679066467697{margin-right: 0px !important;border-right-width: 0px !important;}'][vc_empty_space][/vc_column][/vc_row][vc_row top_padding='20'][vc_column width='1/3' css='.vc_custom_1679066467697{margin-right: 0px !important;border-right-width: 0px !important;}'][/vc_column][vc_column width='1/3'][block_title title='By'][/block_title][/vc_column][vc_column width='1/3'][/vc_column][/vc_row][vc_row top_padding='20'][vc_column css='.vc_custom_1679066467697{margin-right: 0px !important;border-right-width: 0px !important;}'][vc_empty_space][/vc_column][/vc_row][vc_row top_padding='20'][vc_column width='1/4' css='.vc_custom_1679066467697{margin-right: 0px !important;border-right-width: 0px !important;}'][/vc_column][vc_column width='1/4'][staff staff='3037' style='style_2'][/vc_column][vc_column width='1/4'][staff staff='3038' style='style_2'][/vc_column][vc_column width='1/4'][/vc_column][/vc_row][vc_row top_padding='20'][vc_column css='.vc_custom_1679066467697{margin-right: 0px !important;border-right-width: 0px !important;}'][vc_separator][/vc_column][/vc_row][vc_row top_padding='20'][vc_column width='1/3' css='.vc_custom_1679066467697{margin-right: 0px !important;border-right-width: 0px !important;}'][/vc_column][vc_column width='1/3'][vc_column_text]Share via
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Understanding Commercial Real Estate Valuations Amidst Market Dynamics
- Posted by kalyani
- On June 12, 2024
- 0 Comments
Adapting to Regulatory Changes: How Compliance Impacts US Commercial Real Estate Appraisal Standards
- Posted by kalyani
- On May 30, 2024
- 0 Comments
U.S. Hotel Performance Q1 2024
- Posted by kalyani
- On May 8, 2024
- 0 Comments
2. Hotel Name: Wyndham Boston Beacon Hill Location: Boston, MA No. of rooms: 304 Sale Price: $125,000,000 Price per unit: $411,184 per unit Seller: New Boston Fund, Inc. Buyer: RLJ Lodging Trust 3. Hotel Name: AC Hotel Washington DC Convention Center Location: Washington, DC No. of rooms: 234 Sale Price: $116,800,000 Price per unit: $499,145 per unit Seller: Douglas Development Co Buyer: Apple Hospitality REIT, Inc Source: CoStar
Q1 2024 Cap Rates
Average cap rates for U.S. hotels increased by 21 basis points in Q1 2024 compared to Q4 2023. The following table illustrates minimum, maximum, and average cap rates for U.S. hotels in Q1 2024 & Q4 2023.[/vc_column_text][vc_empty_space height='22px'][media image='9224'][vc_empty_space height='22px'][vc_empty_space height='22px'][vc_column_text]
Source: RealtyRates.com[/vc_column_text][vc_empty_space height='22px'][vc_column_text]Cap Rate Q1 2024 Q4 2023 Difference (bps) Minimum 6.29% 5.98% 31 Maximum 16.35% 16.28% 7 Average 10.85% 10.64% 21 Outlook
The transaction outlook for the rest of 2024 is constructive, with investors eager to get on a commercial real estate sector poised for more growth. As higher interest rates make deal underwriting difficult, the bid-ask spread continues to be elevated. Owners with strong operating histories encountered buyers looking for distress, and neither side was willing to give in during 2023. Industry participants expect that deal flow will increase again in the second half of 2024 as investors who stayed on the sidelines will be compelled to act, no matter how the Fed acts.[/vc_column_text][/vc_column_inner][/vc_row_inner][/vc_column][/vc_row][vc_row top_padding='20'][vc_column width='1/4' css='.vc_custom_1679066467697{margin-right: 0px !important;border-right-width: 0px !important;}'][/vc_column][vc_column width='3/4' css='.vc_custom_1701236381406{border-bottom-width: 2px !important;border-bottom-color: #e8e8e8 !important;}'][vc_empty_space height='20px' css='.vc_custom_1679117091839{margin-bottom: 0px !important;padding-bottom: 0px !important;}'][/vc_column][/vc_row]" target="_blank">
Embracing the Future: Integrating AI and Human Expertise in US Commercial Real Estate Valuation
- Posted by kalyani
- On April 18, 2024
- 0 Comments
U.S. Hotel Performance Q3 2023
- Posted by admin
- On January 17, 2024
- 0 Comments
2. Hotel Name: Hampton Inn & Home2 Suites by Hilton New York Times Square
Location: New York City, NY
No. of rooms: 646
Sale Price: $290,000,000
Price per unit: $448,916 per unit
Seller: McSam Hotel Group
Buyer: Dauntless Capital Partners
3. Hotel Name: Motto By Hilton New York City Times Square Location: New York City, NY No. of rooms: 400 Sale Price: $170,000,000 Price per unit: $425,000 per unit Seller: McSam Hotel Group Buyer: Magna Hospitality Group 4. Hotel Name: DoubleTree Resort by Hilton Hotel Paradise Valley - Scottsdale Location: Scottsdale, AZ No. of rooms: 378 Sale Price: $115,500,000 Price per unit: $305,556 per unit Seller: Southwest Value Partners Buyer: Global Hospitality Investment Group Q3 2023 Cap Rates
Average cap rates for U.S. hotels decreased by four basis points in Q3 2023 as compared to Q2 2023. The following table illustrates minimum, maximum, and average cap rates for U.S. hotels in Q3 2023 & Q2 2023.[/vc_column_text][vc_empty_space height='22px'][media image='8839'][vc_column_text]
Source: RealtyRates.com[/vc_column_text][vc_empty_space height='22px'][vc_column_text]Cap Rate Q3 2023 Q2 2023 Difference (bps) Minimum 5.65% 5.72% -7 Maximum 16.16% 16.12% 4 Average 10.53% 10.57% -4 Outlook
Labor shortages, rising cost of debt, continued supply chain constraints, and increased inflation of operating costs are challenging the U.S. lodging sector. In addition to the need to replenish FF&E reserve accounts, many owners are being forced to execute deferred capital expenditure refurbishments to comply with brand-mandated property improvement plans (PIP). On the flip side, the nation’s net lodging supply growth remains well below the long-term average. Although credit markets are volatile, there is no shortage of available financing for hotel assets as institutional and private investment funds are backfilling a void left by banks. Knowledgeable sector investors who understand market dynamics and can leverage relationships with multiple types of capital partners can secure investment funds regardless of market conditions in the upcoming 2-3 quarters. The business outlook for US hotels remains strong for the remainder of 2023, thanks to an uptick in business travel and a healthy preference among business and leisure travelers to stay in hotels. As per a survey commissioned by the American Hotel & Lodging Association (AHLA), 68% of Americans whose jobs involve travel said they were likely to travel overnight for business during the last three months of 2023, up from 59% in 2022. Hotels are the top lodging choice for 81% of business travelers surveyed.[/vc_column_text][/vc_column_inner][/vc_row_inner][/vc_column][/vc_row][vc_row top_padding='20'][vc_column width='1/4' css='.vc_custom_1679066467697{margin-right: 0px !important;border-right-width: 0px !important;}'][/vc_column][vc_column width='3/4' css='.vc_custom_1701236381406{border-bottom-width: 2px !important;border-bottom-color: #e8e8e8 !important;}'][vc_empty_space height='20px' css='.vc_custom_1679117091839{margin-bottom: 0px !important;padding-bottom: 0px !important;}'][/vc_column][/vc_row]" target="_blank">
