Boston, MA, December 15, 2015: HVS is pleased to announce the launch of Consulting & Valuation services and solutions from its Boston office, which expands its coverage in the United States. The Consulting and Valuation office will be led by Erich Baum, CRE, Senior Vice President, who will be joined by Vice Presidents Brian Bisema and Preston Puleo. Though based in Boston, this division will focus on assets located throughout the Northeast region.
The metropolitan Boston market, which is deeply rooted in education and health, also maintains a strong financial sector, as well as significant tourism and technology industries. The Greater Boston lodging inventory is continuing to expand and thrive and could realize approximately 6,600 additional rooms by 2019—a 12% increase to the existing inventory. Hotel demand in Boston is expected to continue its upward trend in the near future, outpacing supply growth and reflective of the city’s expanding commercial and leisure demand generators.
Greater Boston’s lodging metrics are at an all-time historical high, with an average 75% occupancy level and over $177 average daily rate (ADR) registered in 2014; occupancy is expected to sustain this level, while ADR is anticipated to reach a new high by year-end 2015. Convention activity and airport passenger traffic are strong, and unemployment levels and office vacancies continue to decline. Expansion efforts at the Boston Convention & Exhibition Center (BCEC), coupled with the introduction of casino gaming, are additional factors that should contribute to future market growth in the years to come.
According to Rod Clough, MAI, Senior Managing Director of Consulting and Valuation Services, “HVS Boston comprises a vibrant team, offering hotel owners, investors, developers, and operators in this region remarkable appraisal and consulting expertise in addition to its existing expertise in property tax and hotel parking solutions. With the continued strengthening of the greater Boston market and New England as a whole, we see significant opportunity; our expansion cannot come at a better time in the cycle of the industry. We have realized a healthy volume increase in workflow throughout the New England market. Our objective is to keep this momentum going”.
Over the course of 25 years with HVS, Senior Vice President Erich Baum, CRE has overseen close to a thousand hotel assignments in markets from California to New York. This includes hundreds of existing and proposed hotels across New England, where his expert testimony is also called upon in cases involving hotels. Erich, who co-authored the 2001 edition of the Appraisal Institute’s hotel valuation textbook, has written articles on hotel development strategies and the use of market-specific data to forecast hotel income and expenses through a financial downturn. Erich is a state-certified appraiser and member of the Cornell Hotel Society. He earned his master’s degree from the School of Arts & Sciences at the University of San Francisco.
Brian Bisema, who earned his bachelor’s degree in Hospitality Management from Boston University, has performed a wide array of consulting and valuation services since joining HVS in 2006, from appraisals on existing hotels and resorts to feasibility studies for proposed new-build properties.
Preston Puleo worked as an associate with a hotel asset-management firm in Providence, Rhode Island, prior to joining HVS in 2011; his hospitality experience has largely been focused on lodging markets throughout New England, as well as the New York-New Jersey region. He graduated with honors from Cornell University’s School of Hotel Administration.
Erich, Brian, and Preston have authored a number of articles, including Trends and Opportunities: New England Hotel Market; A Brief Guide to Winning a Hotel Property Tax Appeal; and In Focus: Hotel Market Report Boston, MA.
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