United States -  Winston-Salem

Overview:

The Winston-Salem market boasts a diverse economic base. The area is steeped in history but is known for its technology and research environment. Old Salem Museums and Gardens, located on the east side of Downtown, is the restored historic district depicting the Town of Salem, founded in 1766 by the Moravians. Old Salem is an important tourist attraction and historic landmark. The market is also home to the Piedmont Triad Research Park, a 3,500-acre research park near the Piedmont Triad International Airport. Healthcare represents the largest employment sector for the region, led by Novant Health. Wake Forest Baptist Medical Center is an important research hospital in the area. The center is leading the development of the Wake Forest Innovation Quarter in Downtown Winston-Salem, which has quickly become a research hub in biomedical science and information technology. Manufacturing remains a prominent economic driver, as well. R.J. Reynolds continues to have a strong presence in the market. The company's former historic downtown headquarters building was recently redeveloped into a mixed-use facility comprising The Residences at the R.J. Reynolds Building apartment homes, which opened in late 2015, and The Kimpton Cardinal Hotel, which was unveiled in the spring of 2016. In June 2015, Herbalife announced plans for the expansion of its Winston-Salem facility, anticipated to create roughly 300 new jobs for the area by year-end 2018.The Winston-Salem market’s growth has been slow and steady, and this growth is expected to continue at a similar pace through the next several years.

Market demand improved from 2010 through 2015, while average rate growth began more in earnest in 2011. The market experienced continued growth in both metrics through 2015. Two hotel sales have occurred in Winston-Salem since 2013: the Winston Salem Hotel & Spa sold for $6,500,000 ($43,333 per key) in 2013, while the Residence Inn by Marriott Winston-Salem University Area sold for $5,900,000 ($67,045 per key) in 2014. In addition to The Kimpton Cardinal Hotel that opened in early 2016, a new Hampton Inn & Suites is currently under construction downtown. With limited new supply growth expected, coupled with anticipated increases in revenue, 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:

Winston-Salem United States
Previous Year +3% (19 of 71) +1% (49 of 71)
Growth in 2017 +3% (5 of 71) +2% (36 of 71)
Growth in next 4 years +21% (7 of 71) +12% (32 of 71)

Change In Value For Market:

Winston-Salem 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)