Hotel Capitalization Rates Stabilize as Market Forces Create State of Equilibrium

Hotel capitalization rates are stabilizing due to the counter balancing forces of a healthy transaction market, a shortage of product for sale, the low cost of capital and the slowing of net income gains.
Suzanne R. Mellen, MAI, CRE, FRICS, ISHC is based in San Francisco and is the Senior Managing Director and Practice Leader for the firm's U.S. consulting and valuation practice. HVS leaders now live in and work from more than 30 markets throughout the North American region, including San Diego, LA, San Francisco, Portland, Seattle, Vancouver, Las Vegas, and Phoenix in the west. Suzanne has been evaluating hotels and associated real estate for 37 years, has authored numerous articles, and is a frequent lecturer and expert witness on the valuation of hotels and related issues. Ms. Mellen has a BS degree in Hotel Administration from Cornell University and holds the following designations: MAI (Appraisal Institute), CRE (Counselor of Real Estate), ISHC (International Society of Hospitality Consultants) and FRICS (Fellow of the Royal Institution of Chartered Surveyors). Contact Suzanne at +1 (415) 268-0351 or


  1. would like to make investments in hotels as i feel great play on economy

    • Sumeet, Our team at HVS Capital Corp. would be able to help you invest in the hotel industry. Plesae let me know if you would like to make an introduction.

  2. Let me read before I do a coment Thankyou

  3. woonglimJan 22, 2013

    Thank you

  4. im interested in article about hotels industry

    • Shelly, If you look through our library of articles you will find numerous writings on many topics. Thank you for your interest.

  5. Parsram DhanrajJan 29, 2013

    CU alum interested in learning about the hotel industry.

    • Parsram Dhanra, I would be happy to answer your questions. Let me know if you would like to have a call. Thank you for your interest in my article.

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