In Part II of this article, I discuss the importance of diving into local market comparable sales when facing an independent motel valuation. Equally important is knowing the market’s prevalent RRM and sales price per key.
The 41st NYU International Hospitality Industry Investment Conference wrapped up on June 4, 2019, and the overall sentiment of the event was one of caution, a shift from a sentiment of cautious optimism at conferences earlier in the year.
In Part 1 of this series, I discuss the importance of deriving a proper revenue estimate for valuations of independent, budget motels and testing its reasonableness against the norms for the neighborhood and market.
Major public hotel companies recently released their year-end 2018 performance data. Of the 61 brands that report RevPAR statistics, most enjoyed an extended period of high occupancy levels and modest rate growth in 2018.
Overall, the pulse of each area within the Southeast region was positive, with some expecting some softening in occupancy this year, which mirrors our overall national sentiment. ADR growth should keep overall RevPAR change in the positive column.