United States - HVS/STR Hotel Valuation Index

HVS, the world’s leading hospitality consulting and valuation firm, in collaboration with STR, is pleased to deliver the 2017 Hotel Valuation Index (HVI). The HVI offers critical information on 38 U.S. hotel markets and the nation, including:

  • Historical and projected valuation and RevPAR changes
  • Intelligence on market dynamics for primary, secondary, and tertiary hotel markets

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 Fine Print

Each year, more than 80 HVS hotel experts conduct thousands of market studies, feasibility studies, and appraisal assignments for all types of hotels across the U.S. The intelligence gathered from these engagements, combined with analysis of data on hotel performance from HVS and STR, supports the conclusions and projections presented in the annual HVI. The historical and forecasted value changes are grouped into the following ranges:


Significant Value Increase: Greater than +10%
Moderate Value Increase: Between +3% and +10%
Stable Values: Between -3% and +3%
Moderate Value Decline: Between -3% and -10%
Significant Value Decline: Less than -10%

The sample for each market area includes virtually all the hotels in the defined market, ranging from economy to luxury properties; limited-service to full-service operations; assets in poor to excellent condition; and a wide array of locations, from tier-one urban settings to peripheral locations in tertiary submarkets. The resulting data, while an excellent measure of the overall trends in the market as a whole, cannot be applied to any individual submarket or asset group, much less any one hotel. For example, the addition of new supply, or a change in the performance of an individual submarket within the broader market, can cause that submarket to have significantly different results than the market as a whole.

Numerous factors influence the value of an individual asset, including the property’s age, condition, location, amenities and services, brand, management expertise, and reputation. These factors must all be considered in the context of the hotel’s specific competitive market, including the nature, strength, and trends in demand generators; the character and competitive posture of the existing hotels; and the potential addition of any new properties. The value of any individual asset can only be concluded after a thorough investigation of all these factors, and that conclusion will invariably differ—often materially—from the index indicated by the HVI.


Stephen Rushmore, Jr.
MAI, CRE, FRICS
srushmorejr@hvs.com
+1 (617) 868-6840

Market Value Change

Market 2016 2017 2018 2019
Anaheim - Santa Ana
Stable values
Stable values
Stable values
Stable values
Atlanta
Moderate value increase
Moderate value increase
Stable values
Stable values
Austin
Significant value increase
Significant value increase
Moderate value increase
Stable values
Boston
Significant value increase
Stable values
Stable values
Stable values
Charleston
Moderate value increase
Moderate value increase
Stable values
Stable values
Charlotte
Moderate value increase
Stable values
Stable values
Moderate value increase
Chicago
Stable values
Stable values
Stable values
Stable values
Cincinnati
Moderate value increase
Moderate value increase
Stable values
Stable values
Cleveland
Stable values
Stable values
Moderate value increase
Moderate value increase
Columbus
Moderate value increase
Stable values
Moderate value increase
Moderate value increase
Dallas
Moderate value increase
Stable values
Stable values
Stable values
Denver
Stable values
Stable values
Moderate value decline
Stable values
Detroit
Stable values
Moderate value increase
Stable values
Stable values
Houston
Significant value decline
Stable values
Moderate value increase
Moderate value increase
Kansas City
Moderate value increase
Moderate value increase
Moderate value increase
Stable values
Las Vegas
Moderate value increase
Moderate value increase
Moderate value increase
Stable values
Los Angeles - Long Beach
Stable values
Stable values
Stable values
Stable values
Memphis
Moderate value increase
Stable values
Stable values
Stable values
Miami - Hialeah
Stable values
Stable values
Stable values
Moderate value increase
Minneapolis - St Paul
Stable values
Stable values
Stable values
Stable values
Nashville
Moderate value increase
Stable values
Moderate value decline
Stable values
New Orleans
Stable values
Stable values
Moderate value increase
Stable values
New York
Stable values
Stable values
Stable values
Stable values
Norfolk - Virginia Beach
Moderate value increase
Moderate value increase
Moderate value increase
Stable values
Oahu Island
Moderate value increase
Moderate value increase
Moderate value increase
Stable values
Omaha
Stable values
Stable values
Moderate value increase
Stable values
Orlando
Moderate value increase
Moderate value increase
Stable values
Moderate value increase
Philadelphia
Moderate value increase
Moderate value increase
Moderate value increase
Stable values
Phoenix
Moderate value increase
Stable values
Stable values
Stable values
Portland
Stable values
Stable values
Moderate value decline
Stable values
San Antonio
Moderate value increase
Stable values
Stable values
Moderate value decline
San Diego
Moderate value increase
Stable values
Stable values
Stable values
San Francisco - San Mateo
Stable values
Stable values
Stable values
Significant value increase
Seattle
Stable values
Stable values
Moderate value decline
Stable values
St. Louis
Stable values
Moderate value increase
Moderate value increase
Stable values
Tampa - St Petersburg
Moderate value increase
Stable values
Stable values
Moderate value increase
United States
Stable values
Stable values
Stable values
Stable values
Washington DC
Moderate value increase
Moderate value increase
Stable values
Stable values
Wilmington
Stable values
Stable values
Moderate value increase
Moderate value increase

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Top 10 Current Year

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Bottom 10 Current Year

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Top 10 Next Three Years

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Bottom 10 Next Three Years

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