United States -  Salt Lake City - Ogden

Overview:

The Salt Lake City market boasts a growing and diverse economic base. The city is the state’s capital and largest city in Utah. Salt Lake City is best known for being the home of the Church of Jesus Christ of Latter-day Saints, as well as a gateway to several world-class ski destinations, including the Park City Ski Resort, Deer Valley Ski Resort, and Snowbird Ski Resort. Other economic drivers in the market include the University of Utah, Sinclair Oil Company, and Intermountain Healthcare. Zion Bancorporation and Wells Fargo represent major financial firms, and the city is home to Goldman Sach's second-largest North American office. The Salt Palace in Downtown Salt Lake City is one of the largest convention centers in the western United States and holds numerous citywide events, including the Annual Outdoor Retailers Conference. An increase in jobs, a growing population, and a well-educated workforce are expected to support economic growth in the near term.
 
Market-wide demand declined in 2008 and 2009 with the onset of the national recession, but rebounded quickly and consistently from 2010 through 2015. Average rates have increased steadily since 2011, surpassing the $100 mark in 2015. The Salt Lake City market has realized a modest increase in supply over the past two years, and significant projects in the pipeline include a convention center hotel and a luxury downtown hotel, among several other limited- and select-service projects throughout the market. Nonetheless, demand growth is expected to outpace supply growth through 2018. Limited sales volume occurred in Salt Lake City in 2015, with less than five hotel sales recorded at a sales price averaging just above $80,000 per room. Despite anticipated year-over-year demand and revenue growth, we expect the value of Salt Lake City hotels to remain stable over the next two years and then moderately decline in 2018, in line with higher capitalization rates and the anticipated shift in the capital markets.
 
* 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:

Salt Lake City - Ogden United States
Previous Year -1% (58 of 71) +1% (49 of 71)
Growth in 2017 0% (55 of 71) +2% (36 of 71)
Growth in next 3 years 0% (67 of 71) +10% (36 of 71)

Change In Value For Market:

Salt Lake City - Ogden RevPAR % Change

For more information, please contact:

Brett Russell
BRussell@hvs.com
  • +1 720 877-1376 (w)
Katy Black
kblack@hvs.com
  • +1 970 305-2229 (w)