anand rai
HVS Monday Musings: Understanding Hospitality REIT
Anand Rai | January 16, 2023
By Anand Rai, Dipti Mohan The US government first established Real Estate Investment Trusts (REITs) in the 1960s, allowing retail investors access to the nation's vast portfolio of income-producing real estate assets. Since then, the REITs market has expanded significantly across many real estate asset classes, including hospitality. The first hospitality REIT (or lodging REIT) was introduced in the US in 1970, but this asset class didn't start to gain popularity until the mid-1990s when investors realized they could own and profit from lucrative hotel assets without having to spend a significant sum of money to acquire the asset. Today, a...
HVS Monday Musings: Income Capitalization Approach – The Gold Standard for Valuing Hotels
Anand Rai | August 29, 2022
By Anand Rai According to a recent GlobalData report, 573 deals (including mergers & acquisitions, private equity, and venture financing) were announced in the global travel and tourism (T&T) industry in the first half of 2022, reflecting a 3.1% increase over the same period last year. However, before these deals are concluded, the asset needs to be valued. So, how do we determine a hotel's market value and what exactly is valued under the category of hotels? The main valuation techniques are briefly covered in this article. The hotel’s market value takes into account the value of all of its different components, including th...
