United States -  Reno


Reno’s economy is principally based in the trade and service sector, with approximately 65% of the work force employed in related occupations. Although gaming and other recreational activities represent a significant portion of the growing economy, Reno is experiencing gradual diversification of its business base with the expansion of distribution, warehousing, and manufacturing facilities. Furthermore, there has been a significant increase in companies relocating or opening offices in the Reno market to take advantage of tax and other operating expense savings.

Since 2010, the market has steadily absorbed the new supply additions from last decade, and lodging demand has exhibited a strong recovery since the recession. Expansion of Reno's economic base resulting from proactive regional business recruitment and retention strategy, locational/transportation advantages, and a sound economic development program has benefitted the transient lodging market. As the growth in new supply has been relatively limited in recent years, the value trajectory has continued upward. Despite significant economic developments in the region (e.g., Tesla’s new “Gigafactory,” located in the Reno-Tahoe Industrial Center east of Reno) and the continuing influx of business, the barriers to entry (including brand-exclusivity agreements, lack of prime/developable land, and general cost of development) have curtailed further hotel development in the area. Hotel sales in the Reno market have increased from none in 2013 to one sale in 2014 (Courtyard by Marriott) and three sales in 2015 (Sienna Hotel and Casino, Vagabond Inn, and Econo Lodge).

* 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:

Reno United States
Previous Year +2% (22 of 71) +1% (49 of 71)
Growth in 2017 +3% (10 of 71) +2% (36 of 71)
Growth in next 3 years +15% (10 of 71) +10% (36 of 71)

Change In Value For Market:

Reno RevPAR % Change

For more information, please contact:

Shannon Okada
  • +1 702 280-1405 (w)
Desiree Flanary, MAI
  • +1 970 381-9794 (w)