July 2012
Hotel Update:
Greg L. Goforth, Director of Coldwell Banker Commercial Jenkins & Associates, Hotel Division reports his opinion:
Goforth mentions that the “hotel” transaction market is still very challenging, especially in the sub markets. The primary markets, or metro markets have the greatest activity, price per rooms hover well over $200,000 per key. The difficulty is financing, credit markets are tight and as a result it’s the private equity firms and institutional equity players that are able to make the acquisitions. The good news is the room supply has not gone crazy and the better news is ‘demand’ is increasing! Hotels NOI is going up and I see the sun shining brighter. The future for the hotel industry looks much brighter, all prognosticators forecast from 5.5% to 6.5% increases (+) in RevPAR for 2012 and 2013, and so the 5-7 year cycle starting in 2010 begins! For more information and an immediate conversation call Greg’s cell phone 503-936-4358, e. Gregg@cbcworldwidenw.com
