Positive Operating Leverage Results in Another Year of Hotel Value Gains; Cap Rates Start to Rise

Five years of steady cap rates and rising NOI have resulted in significant U.S. hotel asset appreciation. The current economic landscape is likely to cause hotel cap rates to rise in 2016, moderating future value gains.
Suzanne R. Mellen, MAI, CRE, FRICS, ISHC is based in San Francisco and is the Senior Managing Director and Practice Leader for the firm's U.S. consulting and valuation practice. HVS leaders now live in and work from more than 30 markets throughout the North American region, including San Diego, LA, San Francisco, Portland, Seattle, Vancouver, Las Vegas, and Phoenix in the west. Suzanne has been evaluating hotels and associated real estate for 37 years, has authored numerous articles, and is a frequent lecturer and expert witness on the valuation of hotels and related issues. Ms. Mellen has a BS degree in Hotel Administration from Cornell University and holds the following designations: MAI (Appraisal Institute), CRE (Counselor of Real Estate), ISHC (International Society of Hospitality Consultants) and FRICS (Fellow of the Royal Institution of Chartered Surveyors). Contact Suzanne at +1 (415) 268-0351 or smellen@hvs.com.


  1. Russell UrbanJan 26, 2016

    Always love the thorough and timely research!

  2. connie fergusonJan 26, 2016

    The lodging data are quite helpful. Glad to know the lodging industry is looking positive.

  3. Mia ParkMar 24, 2016

    Not specific available

  4. I appreciate the information.

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