Introduction For the past seven years, hotel capitalization rates (cap rates) have generally declined, according to investor surveys. The last time hotel cap rates increased for consecutive survey periods was in 2008, as the investment community realized the U.S. economy was in the early stages of a severe economic recession. From 2008 through early 2010, […]
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, […]
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 […]
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. […]
