United States -  Syracuse


Syracuse’s diversified economy, inclusive of the education, healthcare, and biotech sectors, as well as the manufacturing and transportation industries, is generating a rebound in lodging demand. Additionally, the 2012 expansion of the Destiny Mall has continued to drive visitation, with an estimated 26 million visitors in 2015, including shoppers from Canada. The Syracuse market is attracting new hotel development, largely concentrated in the limited- and select-service sectors, following growth among the major employment sectors and at the city's tourism attractions. Market-wide occupancy reached 58% in 2015, with a market-wide average rate of $98. For 2016, occupancy is expected to remain generally flat, while rate is anticipated to break the $100 barrier after six years of consecutive growth. A dual-branded Courtyard by Marriott/ Residence Inn by Marriott hotel, comprising 102 and 78 guestrooms, respectively, opened in Downtown Syracuse in 2013. Additionally, developers broke ground in late 2014 on a 134-room Aloft Hotel, which is intended to be part of a $350-million waterfront redevelopment; this hotel is scheduled to open in July 2016. The same developer has plans for a 123-room Element Hotel, which is expected to open in April 2018. Perhaps the city's most notable hotel development is the $57-million restoration and renovation of the historic Hotel Syracuse Downtown; the hotel is slated to reopen in July 2016 as a 261-room Marriott. Additionally, in eastern Syracuse, a pocket of hotel development is occurring in the Carrier Circle market; seven hotels have been approved, two of which were completed in 2015: a 101-room Homewood Suites by Hilton and a 92-room Hampton Inn & Suites. Several of these proposed properties, which will be limited-service hotels, are expected to replace older, functionally obsolete hotels.
Hotel transaction activity has been limited to three transactions within the past three years, all of which occurred in 2015 and the first part of 2016. The dual-branded Courtyard by Marriott/Residence Inn by Marriott property sold in October 2015 for approximately $235,000 and $232,000 per room, respectively; these sales reportedly represent the city's highest per-key transactions. Most recently, the 279-room Crowne Plaza sold for approximately $50,000 per room in May 2016; this was a troubled asset at the time of sale. As the market’s hotel supply expands and the local and national economy improves, transaction activity is likely to pick up. With steady improvement in the lodging market’s operating performance, hotel values are expected to continue to appreciate over the near term.

* 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:

Syracuse United States
Previous Year +1% (40 of 71) +1% (49 of 71)
Growth in 2017 +2% (27 of 71) +2% (36 of 71)
Growth in next 3 years +11% (25 of 71) +10% (36 of 71)

Change In Value For Market:

Syracuse RevPAR % Change

For more information, please contact:

Brian Bisema
  • +1 781 454-8930 (w)