suzanne r. mellen
The Impact of COVID-19 on Hotel Values
Anne R. Lloyd-Jones | April 15, 2020
By Anne R. Lloyd-Jones, Suzanne R. Mellen, Tanya J. Pierson The COVID-19 pandemic and the related restrictions on travel, business activity, and individual movement are having an unprecedented impact on our industry and economy. Hotel owners, operators, lenders, and investors are all facing greater challenges than ever anticipated, as they grapple with plummeting occupancy, average rate (ADR), and RevPAR and seek solutions to mitigate the impact on EBITDA. Owners and operators are dealing with the current crisis day-to-day, making hard decisions regarding staffing, continuing or suspending operations, and having difficult conversations w...
Impact of Countervailing Forces on Hotel Values and Cap Rates
Suzanne R. Mellen | January 24, 2018
By Suzanne R. Mellen After more than five years of relative stability, new factors are at play in the hotel investment market that will affect hotel capitalization rates and values in a changing economic landscape. Hotel sales transaction activity declined in 2017, while cap rates continued to rise modestly, and hotel values held stable. The outlook for 2018, while uncertain because of the changing political and economic landscape, is more positive than a year ago due to the tax reform's favorable treatment of commercial real estate and a more optimistic business environment. This article presents recent trends and a sensitivity analysi...
US Hotel Value Gains Moderate as RevPAR Growth Slows and Cap Rates Rise
Suzanne R. Mellen | January 25, 2017
By Suzanne R. Mellen Hotel investment activity experienced a bumpy ride in 2016. With a slowdown in RevPAR growth, a stalled CMBS market, and concerns about increased supply, cap rates rose and deal activity slowed. The year ended on a positive note as lodging REIT stocks rallied and economic growth is projected to strengthen. This article, which is published biennially, discusses trends in hotel capitalization rates and provides an outlook for 2017. Following exceptionally strong hotel transaction activity in 2015, the market stalled in the first quarter of 2016 and then rebounded, ending the year with a healthy level of transactions, ...
HVS Market Pulse: San Francisco, CA
Katie Minnock | January 12, 2017
By Katie Minnock, Suzanne R. Mellen San Francisco is a major hub for employment in the high-tech and financial sectors, and is revered both as a tourist destination and as a gateway to the Asia Pacific region. In addition, San Francisco is home to the Moscone Center, which is currently undergoing a $500-million renovation and expansion. As such, the city draws a balanced mix of commercial, meeting and group, and leisure guests. San Francisco's hotel stock is primarily clustered in five loosely defined districts near demand generators: Union Square and the Financial District, which although different submarkets, primarily play host to fu...
