COLUMBUS, OH--(Marketwire - Feb 25, 2013) - While the U.S. economy remains sandwiched between two "fiscal cliffs," the overall news in the Winter 2013 USRC Hotel Investment Survey continues to be positive. Overall investment parameters have now been essentially flat to slightly improving for nearly two years, and remain strong by historical standards. While expectations for revenue growth continue to exceed expense growth, the spread is shrinking, largely an indication that the recovery has matured from "ramp-up" to more sustainable growth. Still, overall investment parameters remain near their lowest level in survey history. More specifically, in the current survey, full-service capitalization rates were essentially flat at an 8.0% survey average. As yield requirements remain low, anticipated revenue growth (reflected by ADR expectations) continues to exceed expense growth estimates, indicating continued expectations of NOI recovery.

We have stated in the past several surveys that we continue to note that the current investment environment is quite bifurcated, or split, as "A+" hotel assets have found favor among REIT/institutional investors and some lenders, while those less stable properties still have a more limited buyer pool and debt options. In general, the buyer pool and lending options for good quality hotels have expanded, even if they fall short of the A+ properties in primary coastal cities. In particular, investor interest appears to be picking up for well-branded, stable limited-service hotels, while older suburban properties still lag.

The complete survey, including data on capitalization rates, discount rates, ADR and expense growth expectations, marketing time, debt parameters, and other data for both full-service and limited-service hotels, can be ordered through the company's website at, and clicking "Publications."

Jeffrey H. Walker, MAI, CRE is Principal and Managing Director of US Realty Consultants. He is a 1985 graduate of James Madison University and has been involved in the hotel and restaurant industries since the 1970s. He spent much of his early career with Hyatt Hotels and Resorts, and has been a hotel consultant since 1992. He is involved with hundreds of hotel analyses annually for national lenders and major institutional clients, and is a frequent speaker at national conventions. He can be reached at 614-221-9494 (ext 150) or at

Contact Information:

Jeffrey H. Walker, MAI, CRE
614-221-9494 (ext 150)