Hotel Online  Special Report

Hotel Capitalization Rates Drop Further


Survey Winter/Spring 2005
Promotional Description
Price: $199.00

by:  David J. Sangree, MAI, CPA, ISHC Director of Hospitality Consulting, and Rajesh Shah, Associate 

The Winter 2005 USRC Hotel Investment Survey of 25 hotel investors indicates that discount rates and capitalization rates for both limited-service and full-service hotels have decreased since our Winter 2004 survey, despite the recent increase in the U.S. Treasury Rates. The author has completed this hotel investment survey annually since 1995.  The drop in both types of rates is due to increased confidence in the overall hotel market, as most markets are projected to achieve increases in occupancy and ADR in 2005, which will increase overall revenue and net operating incomes. Full-service hotels recorded a larger decrease in direct capitalization rates as compared to limited-service hotels. The decreases have occurred as the risk associated with hotel investments has returned closer to normal levels following the impact from the recession and war with Iraq on last year's survey.  The report analyzes and provides numerous charts and tables depicting historical and current trends of the followings for limited and full service hotels:

  • Capitalization Rates (Direct Capitalization Rate & Terminal Capitalization Rate) 
  • Discount Rate 
  • Interest Rate 
  • Selling Expense 
  • Management Fee Expense 
  • ADR Growth 
  • Expense Growth 
  • Holding Period 
  • Loan Term 
  • Amortization Period 
  • Marketing Period 
  • Loan-to-Value Ratio
  • Debt Coverage Ratio 
  • Reserve for Replacement 
  • Rooms Revenue Multiplier 
  • Major Concerns
To order a copy of this seven page report via credit card, please visit our website: and click on link to allow you to access the pay pal web site to purchase the article.

Send a check for $199.00 payable to:

US Realty Consultants
Attn: Raj Shah
14805 Detroit Ave, Suite 415
Cleveland, Ohio 44107 
Phone: 216-221-919




David J. Sangree, MAI, CPA, ISHC
Hotel & Leisure Advisors
14805 Detroit Avenue, Suite 420
Cleveland, OH 44107-3921
216-228-7000 Phone    216-228-7320 Fax

US Realty Consultants
216-221-9191 Phone     216-221-9097 Fax

Also See: Hotel Capitalization Rates Drop Further / May 2005
Cleveland’s Lodging Market: A Slow Climb Back / David J. Sangree & Joseph Pierce/ February 2005
Indoor Waterpark Resorts Continue Impressive Growth in ‘05; a Viable Segment of the Travel / David J. Sangree / January 2005
Indoor Waterpark Resorts Expand Nationwide / David J. Sangree / April 2004
Cleveland Lodging Market at Bottom with Improvement Predicted / US Realty Consultants, Inc. / January 2004
Hotel Capitalization Rates Drop Again / David J. Sangree, MAI, CPA, ISHC / April 2004
Appraisal and Financing of Indoor Waterpark Resorts / David J. Sangree / October 2003
Hotel Capitalization Rates Drop / David J. Sangree, MAI, CPA, ISHC / February 2003

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