The Hampton Roads area has historically benefited from strong leisure and tourism demand, government activity at the area’s military facilities, and corporate travel. Since early March 2020, however, the Hampton Roads lodging market has suffered a decline in demand, like most metropolitan areas in the United States, because of the COVID-19 pandemic. How much of an impact has the market experienced, and how quickly can this historically stable market recover?
Supported by lower interest rates, transaction activity held up during a year of uncertainty. This article addresses recent trends in hotel sales and capitalization rates, the course of hotel values since the last downturn, and the outlook for 2020.
Average rates are up and supply growth is flat in Annapolis, which bodes well for the city’s overall hotel performance picture. Have local hoteliers been able to reach a better balance between leisure, commercial, government, and group demand?
Employment in Oklahoma City stands far ahead of the nation, and activity generated by agriculture, energy concerns, and the military has kept the economy going strong. What has this meant for recent hotel performance, supply, and transactions?
Business relocations and expansions are one sign of Oklahoma City’s economic strength since the recent recession; increasing hotel tax revenues, greater demand, and new supply demonstrate the strength of the city’s hotel sector.
The increase in hotel transactions and low cost of debt and equity have driven down rates of return to pre-recession levels. This article sets forth an overview of recent hotel cap and discount rate trends and provides an outlook for 2011.