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Hotel Underwriting Tips

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Hotel Underwriting Tips

As the owner of a hotel appraisal and advisory company, I get the opportunity to review hundreds of hotel appraisals, feasibility studies, investment pitch books, and offering memoranda each year. One of the things I’ve learned over the past two decades is that a few small changes in underwriting assumptions can greatly affect how hotel […]

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Ranking Hotel REITs: 2018 Report

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Ranking Hotel REITs

Ranking Hotel REITs Hotel Appraisers & Advisors (HA&A) is pleased to announce our third annual ranking of hotel real estate investment trusts (REITs). HA&A currently monitors 16 hotel REITs, discussed throughout this report. Some hotel REITs are more effective than others at generating earnings and passing profits on to investors. In this year’s report, we […]

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Airbnb’s Market Share of U.S. Lodging Demand

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A Rapid Rise Since 2007, when Airbnb was created, the U.S. lodging industry has experienced a rapid increase in both traditional hotel demand and lodging demand occurring in the sharing economy. Airbnb has become a dominant channel for listing available lodging units in the sharing economy.[1] In this article, Hotel Appraisers & Advisors (HA&A) estimates […]

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How Long Do Economic Cycles Last?

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Economic Cycle

History Repeats Itself In June of 1857 the U.S. economy entered its 30th consecutive month of expansion. But banks were already starting to feel the impact of bad loans piling up. As the gold rush slowed, the pace of migration westward across the country also slowed. Railroad stocks began to decline. Land speculators lost big […]

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The 40 Most Successful U.S. Hotel Investments

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Successful Hotel Investment

Introduction and Methodology This article is the first in a series of articles that will discuss various characteristics of the 40 most successful hotel investments in recent U.S. history[1]. Hotel Appraisers & Advisors, LLC (HA&A) evaluated thousands of hotel transactions that occurred during the past 20 years. We narrowed our evaluation to hotels that have […]

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Ranking Hotel REITs: 2017 Report

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Hotel Appraisers & Advisors (HA&A) is pleased to announce our second annual ranking of hotel real estate investment trusts (REITs). HA&A currently monitors 16 hotel REITs, ranked on our Hotel REIT Tracker website. Some hotel REITs are more effective than others at generating earnings and passing profits on to investors. In this year’s report, we […]

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Quantifying Chicago’s Pent-Up Lodging Demand

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Hans Detlefsen

Chicago’s Sold-Out Hotel Nights Represent 1.6 Million Unaccommodated Room Nights of Lodging Demand Annually Introduction Popular tourism and business destinations, like Chicago, experience significant weekly and monthly fluctuations in lodging demand. Different leisure, corporate, and convention travel schedules combine to create patterns of peak lodging demand throughout Chicago’s downtown area. June is the busiest month, […]

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Hotel Development & Public-Private Partnerships

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Hans Detlefsen

Public-Private Partnerships This article discusses how communities can use public-private partnerships to attract hotel development projects and why policy makers should care about developers’ cost of capital. Although many communities have identified the need for a new hotel or conference center, market demand may not be sufficient to cause the private sector to develop such […]

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Consumer Surplus vs. Market Value in Hotel Appraisals

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Hans Detlefsen

Why Some Appraisers Confuse Consumer Surplus with Property Value in Hotel Appraisals Introduction Many hotel appraisals overestimate personal property value. This seems to occur mainly in appraisals prepared for property tax appeals. Perhaps not coincidentally, hotel owners in certain taxing jurisdictions benefit when more of their overall hotel value is classified as personal property (e.g. […]