Hotel Capitalization Rates Hold For Now
Source: US Realty Consultants, Inc.
The Mid-Year 2007 USRC Hotel Investment Survey indicates that discount rates and capitalization rates for both limited-service and full-service hotels have generally held at or near the record lows demonstrated in the Winter 2007 survey. However, it does not appear that the generally declining trend since 2002 is continuing, or that rates are become more aggressive, as capitalization rates have generally flattened. In commentary, participants expressed some concern regarding increasing risks to investment parameters from recent volatility in the capital markets.