valuations & market studies
Is the German Hotel Market Poised to Be One of the Fastest in Europe to Recover From COVID-19?
Arlett Hoff | April 23, 2020
By Arlett S. Hoff A Short Outline of the Pandemic Response in Germany The 2019-20 coronavirus pandemic was confirmed to have reached Germany on 27 January 2020, when the first COVID-19 case brought in by a Chinese visitor at Webasto was confirmed and contained near Munich, Bavaria. The majority of cases in January and early February originated from the headquarters of a car parts manufacturer there. On 25 and 26 February, multiple cases related to the Italian outbreak were detected in Baden-Württemberg. A large cluster linked to a Carnival event was formed in Heinsberg, North Rhine-Westphalia, with the first death reported on 9 March 2020....
Purchase Price Allocations for Hospitality Assets
Tim Sauer | May 10, 2017
By Tim Sauer I recently attended a presentation where the presenter used a hamburger as an analogy for a cost-segregation study. While most people just see a hamburger, he sees a beef patty, lettuce, tomato, cheese, and a bun. That is to say, he doesn't see a single piece of real estate, but numerous smaller assets that comprise the larger asset. The same can be said of a purchase price allocation (PPA). Introduction to Purchase Price Allocations As the name implies, the objective of a purchase price allocation is to allocate the purchase price of an asset to its component parts. Unlike a cost-segregation study, which allocates cost for...
HVS Market Pulse: Island of Oahu, Hawaii
John Berean | August 23, 2016
Tourism to Hawaii's most populous island is booming, with Asian-Pacific countries sourcing a major boost in visitation. Given a number of planned projects across Oahu, hotel developers and major brands are working to meet the demand. By John Berean Many things make Hawaii unique among American tourism destinations. The island chain's physical separation from the U.S. mainland heightens its diverse, exotic allure—a Hawaiian vacation is different in nature (no pun intended) than a trip to any other subtropical destination in the continental U.S. Hawaii is also closer to critical Asian markets, including China, which is producing an...
2015/16 United States Hotel Franchise Fee Guide from HVS
Kasia M. Russell | July 25, 2016
The selection of an appropriate franchise affiliation affects a property's ability to compete in its local market, generate profits, and achieve a desirable image and market orientation. By Kasia M. Russell and Bomie Kim The HVS U.S. Hotel Franchise Fee Guide provides a comparative review of various hotel franchises based on their applicable franchise fees. The selection of an appropriate franchise affiliation affects a property's ability to compete in its local market, generate profits, and achieve a desirable image and market orientation. Because the success of a hotel is based primarily on the cash flow generated, owners and lenders...
U.S. Hotel Supply Growth Still in Check with Demand
Susan Furbay | May 12, 2015
by Susan Furbay MAY 2015 Years of rising average daily rates and demand, among other factors, have made the ground fertile for new hotel supply. How will the growing pipeline of new hotels impact hotel markets in the near term? The U.S. hotel industry has reaped sizable benefits from the remarkable growth in the U.S. since the Great Recession. Nationwide lodging demand has been up year after year. RevPAR growth in 2014 was one of the highest on record, and demand across all chain scales shows every sign of accelerating in 2015. This is particularly true for urban gateway markets, where high demand for rooms allows owners to raise rate...
US Cities Achieve World Class Status as Foreign Investment Booms
Kathy Conroy, MAI | April 22, 2015
By Kathy Conroy, Apr 16, 2015 This article offers a comparison of international investment in US Hotels during periods of strong hotel operating performance and a close look at Florida. In September 2013, my colleague at HVS Miami, Andrew Cohan MAI, published an article entitled "Miami's Leap to Global Gateway Status". In that article, Cohan pointed out several interesting facts denoting Miami's shift to a global or world gateway city. One of the factors noted by Cohan was the movement in the HVS Hotel Valuation Index for Miami -- from just above the national average index in 2002 to almost four times the national average index by 2011...
