United States -  Greensboro

Overview:

The greater Greensboro area benefits from its diverse economic base, supported by the healthcare and life science sectors, as well as the transportation and logistics industry. Cone Health, Honda Aircraft Company, and Volvo Group North America represent a few core companies in this market. Its central location within North Carolina makes Greensboro a convenient area for youth and amateur sporting events, which also contribute to the market dynamics. The Greensboro Aquatic Center (GAC) hosts all levels of competitive aquatic sporting events including USA Swimming meets and Atlantic Coast Conference (ACC) Swimming & Diving competitions.

The revitalization of Downtown Greensboro is anticipated to further spur commercial and residential development. Among numerous redevelopment and beautification efforts is the Union Square Campus project, a joint venture between three universities and Cone Health that is planned to comprise a healthcare-education facility and a mixed-use development. The Steven Tanger Center for Performing Arts is slated to open in June 2018 and will feature a rooftop terrace that overlooks LeBauer Park, a new attraction that is scheduled to open in July 2016.

Market demand improved from 2010 through 2014, followed by relative stability in 2015. Average rate growth began more in earnest in 2011, a trend that continued through 2015. Limited sales volume has occurred in Greensboro since 2014, with three hotel sales recorded at a sales price averaging approximately $70,000 per room. However, new hotel development has been on the rise. The Home2 Suites by Hilton Greensboro Airport opened in 2014, and the Hilton Garden Inn Greensboro Airport entered the market the following year. Two new hotels are currently under construction, while another two hotel development projects are in the planning stages. Although new supply is expected to enter the market within the next few years, revenue gains are still anticipated. As such, hotel values should appreciate over the next several years, albeit at slower rates than in the recent past.

* 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:

Greensboro United States
Previous Year +2% (27 of 71) +1% (49 of 71)
Growth in 2017 +2% (19 of 71) +2% (36 of 71)
Growth in next 4 years -100% (69 of 71) +12% (32 of 71)

Change In Value For Market:

Greensboro RevPar % Change

For more information, please contact:

Janet Snyder
jsnyder@hvs.com
  • +1 972 978-4714 (w)
Patricia Shih
pshih@hvs.com
  • +1 404 791-5509 (w)
Mike Bendert
mbendert@hvs.com
  • +1 248 953-7894 (w)