United States -  Dayton - Springfield

Overview:

Dayton is the county seat and largest city of Montgomery County, Ohio. Dayton is situated within the Miami Valley region of Ohio, just north of the Cincinnati metropolitan area. Dayton has been recognized as a leader in what is called the “Rust Belt Revival,” helping to transform the industrial economy to an information-based economy. The city plays host to significant industrial, aerospace, and technological/engineering research activity, and many technical innovations and inventions were developed in Dayton. Additionally, the city was the home of the Wright brothers, which provides the Dayton area with a historical connection to its aerospace and engineering industries. As such, the presence of Wright-Patterson Air Force Base plays a major role in the economy of the greater Dayton area. In the past ten years, employment in education and health services has grown steadily in Dayton. More than 35 institutions of higher learning in the metropolitan area provide a significant number of jobs. Area healthcare facilities have been steadily expanding both their physical facilities and the services offered. Technological advances in health care have been readily adopted in Dayton area hospitals, making this economic sector one of the most promising for the region.
 
With the government and military playing such a large role in the local economy, the per-diem rate freeze and government sequestration negatively affected the market area in 2013, essentially halting any significant growth. New supply has entered the market area, but in the growing suburban markets, replacing dated products with new hotels; older properties are being converted to more popular brand affiliations. The Downtown Dayton market was also affected by the loss of the DoubleTree by Hilton flag on what was known as the Dayton Grand Hotel, leaving only one branded hotel in the Central Business District, negatively affecting the local convention market. However, the hotel underwent a major renovation in 2015 and attained the DoubleTree by Hilton flag once more in April 2016. Additionally, a new Fairfield Inn & Suites by Marriott is in the pipeline for the Water Street Development located Downtown. This, along with the rebranding of the DoubleTree, should help promote an increase in conventions going forward. Furthermore, several hotel development projects are on the horizon for the greater Dayton area, particularly in the North Dayton, Beavercreek, and Miamisburg market areas.
 
Limited sales volume occurred in Dayton in 2015, with only three hotel sales recorded at a sales price averaging approximately $72,000 per key. The highest price per key paid was for the Homewood Suites by Hilton Dayton South, which sold for approximately $76,000 per key.
 
* The HVI is an index, a statistical concept reflecting a measure of the difference in the magnitude of a group of related variables compared with a base period. As such, it is a measure of broad market trends, rather than a conclusion as to the specific value of any asset, and cannot be applied to an individual asset. A good comparison is the Consumer Price Index. While this index provides a reliable measure of the overall rate of inflation in a region, it does not indicate how the price of milk has changed at your grocery store. So how can the HVI be of use to an individual investor? Although the HVI cannot tell you what a particular hotel is worth, it does provide excellent big picture data, indicating which market areas are experiencing positive trends, and thus may present good investment opportunities. The HVI for the U.S. is a measure of the strength of the lodging industry as a whole and, specifically, the hospitality investment market. The HVI for the various identified markets can provide a basis to evaluate and compare different geographic regions. For more insight on the limitations and applicability of the HVI, please read the message on the HVI home page by clicking on the graphic at the top of this page.

Valuation Trends and Predictions:

Dayton - Springfield United States
Previous Year +0% (53 of 71) +1% (49 of 71)
Growth in 2017 +1% (43 of 71) +2% (36 of 71)
Growth in next 3 years +9% (45 of 71) +10% (36 of 71)

Change In Value For Market:

Dayton - Springfield RevPar % Change

For more information, please contact:

Stacey Nadolny, MAI
snadolny@hvs.com
  • +1 419 367-3879 (w)
Meghan Bean
mbean@hvs.com
  • +1 734 649-7221 (w)
Brian Arevalo
barevalo@hvs.com
  • +1 817 680-7666 (w)