Positive Operating Leverage Results in Another Year of Hotel Value Gains; Cap Rates Start to Rise

Five years of steady cap rates and rising NOI have resulted in significant U.S. hotel asset appreciation. The current economic landscape is likely to cause hotel cap rates to rise in 2016, moderating future value gains.
Suzanne R. Mellen, MAI, CRE, FRICS, ISHC is the Senior Managing Director and Practice Leader of HVS Consulting and Valuation. She has been evaluating hotels and other hospitality real estate assets for 40 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 [email protected].


  1. Russell UrbanJanuary 26, 2016

    Always love the thorough and timely research!

  2. connie fergusonJanuary 26, 2016

    The lodging data are quite helpful. Glad to know the lodging industry is looking positive.

  3. Not specific available

  4. I appreciate the information.

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