HVS Presents the 2007 US Hotel Valuation Index (HVI)

Steve Rushmore has announced the publication of the 2007 US Hotel Valuation Index.

HVS Presents the 2007 US Hotel Valuation Index (HVI):

* An overview of the trends, transactions, and US hotel investment activity in 2006
* U.S. Hotel Industry has exhibited continued strong growth since 2004

Steve Rushmore, president and founder of HVS, the leading global hospitality consulting and hotel appraisal firm, has announced the publication of the 2007 US Hotel Valuation Index. The U.S. Hotel Valuation Index (HVI) tracks and discusses hotel values in each of the 66 major U.S. markets and for the United States as a whole. Created in 1987 by HVS, the HVI is derived from an income capitalization approach, utilizing market area data provided by Smith Travel Research (STR) and historical operational and capitalization rate information from HVS’s extensive global experience in hotel feasibility studies and valuations.
With this information, it is possible to determine historical hotel per-room values, as well as an indication of hotel value growth through 2008.

“The United States HVI shows that per-room hotel values (expressed in
dollars) increased, on average, by 22% across the United States in 2006,”
report Sumit Kapur and Michael J. Pajak, who co-authored the document with Rushmore. “On average, per-room values in the United States rose by roundly $18,000 in 2006, and all but four of the 66 markets reviewed experienced increases in per-room value. Per-room values across the country have thus exhibited three continuous years of growth above 20%, following a decline in 2003. Even more telling is that the decline of capitalization and interest rates in the United States indicates continued favorable financing conditions for investors to refinance or buy lodging facilities for the next two years.”

An additional feature of the 2007 HVI is the Volatility Index, created by Steve Rushmore. This hotel investment analysis tool assists in identifying markets in which to buy or build hotels. “The Volatility Index is an analysis of the historical rates of per-room value changes for an individual market,” explains Rushmore. “The Volatility Index determines the standard deviation in market per-room value changes since 1987, and divides this standard deviation by the overall average per-room value of a market during the same period. Markets with historically minimal changes in value (volatility) that are expected to record strong increases in per-room value demonstrate favorable market conditions to buy or build hotels.”

The 2007 HVI also analyzes the investment activity of major single-asset sales of more than $10 million since 2000. HVS monitors hotel markets to collect information on hotel sales and trends. HVS’s comprehensive database contains information on hotel transactions that occurred in the United States from 1990 through the first quarter of 2007.

HVS is a global services and consulting organization focused on the hotel, restaurant, shared ownership, gaming, and leisure industries. Established in 1980, HVS performs more than 1,500 assignments per year for virtually every major industry participant. HVS is client driven, entrepreneurial, and dedicated to providing the best advice and services in a timely and cost-efficient manner.

The firm has provided consulting services globally for thousands of clients in more than 60 countries stretching across North and South America, Europe, the Middle East, Africa, Asia, and Australasia. Its professional staff of more than 150 industry specialists offers a wide range of services, including market feasibility studies, valuations, strategic analyses, brokerage, development planning, and litigation support. Through its vast array of services, HVS supplies unique hotel consulting expertise in the areas of executive search, food and beverage operations, gaming, technology, hotel operations, asset management, sales, marketing and public relations, interior design, parking, golf, and investment counseling.

To obtain a free copy of the 2007 Hotel Valuation Index, please click this link http://www.hvs.com/Jump/?f=2290.pdf&c=2839&rt=4 or contact Ms. Joan Raffetto at 516-248-8828 x 231, or email mailto:jraffetto@hvs.com