Message from Rod Clough, MAI, President, HVS Americas: Join us in celebrating our 40th anniversary! 

HVS has been busy at work updating our important research publications to help you manage challenges through our industry’s crisis. Check these out here and connect with our authors. 

We are also hosting a webinar with some our industry’s top players in January. Their insights will be critical as we launch into 2021 and brighter times ahead. Sign up for our webinar here. LINK

In Partnership,

Rod Clough, MAI
President, HVS Americas

COVID-19’s Impact on Values 
By Rod Clough, MAI, Ryan Mark and Chris Cabrera

Since mid-summer, we have re-appraised 140 hotels that we valued in the years and months leading up to the onslaught of the COVID-19 pandemic in March 2020. Not every hotel has lost value, but value declines have predominantly fallen in the range of 15% to 30%.

Canadian Lodging Outlook Quarterly 2020-Q3 

Through Q3 2020, RevPar in Canada continues to deteriorate, declining 61% over 2019. Hotels in the luxury segment and those with more than 500 rooms have taken the brunt of the impact. Covid-19 is not affecting markets uniformly across the country. The Okanagan and Northern Ontario markets have fared best with decreases of 33% and 35% while the hardest hit market, Downtown Montreal has a RevPAR decline close to 80%. With the pandemic not slowing, we don’t foresee improvement until the spring.

Third-Quarter Brand Performance Update: Summer Helps Industry Gain from Q2 Shutdown Lows 
By Rod Clough, MAI

HVS compiled the Q3 2020 performance statistics of brands reported by public companies. The data reflect the gains made during the post-lockdown summer months versus a very low Q2; however, with leisure travel slowing in the current and coming quarter, coupled with the increasing COVID-related restrictions, this trend may be short lived.

COVID-19’s Impact on the San Diego Lodging Market 
By Marcus Lee

Since early March, greater San Diego-area hotels have suffered unprecedented declines in demand, similar to most cities in the United States, because of the COVID-19 pandemic. How far has the San Diego hotel market fallen? How does this compare to the last recession? What will the recovery look like?

HVS Announces Promotion of Tanya Pierson to Senior Managing Director 

HVS is pleased to announce that Tanya Pierson, MAI, has been promoted to Senior Managing Director. Tanya is based in Minneapolis, Minnesota. She has over 25 years of experience across all facets of hospitality consulting and appraisals, including valuation expertise across all segments of the lodging industry, portfolio valuations, lodging supply-and-demand analyses, facility recommendations, feasibility studies, and expert testimony.

INVESTMENT OPPORTUNITY - Comfort Suites Houston NW - Vintage Park 

HVS, as the sole and exclusive advisory firm to Ownership, is pleased to present the opportunity to acquire the 64-key Comfort Suites Houston NW - Vintage Park ,a limited-service asset located in the historically strong Northwest Houston submarket. A new investor will have the opportunity to realize the significant upside of acquiring a recently renovated, underperforming, absentee owned asset sigifnicantly below replacement cost. The investor will be able to “turnaround” operations by improving yield-management strategies, revitalizing sales and marketing initiatives, and recapturing its competitive advantage. Please visit our listings or contact Eric Guerrero, James Rebullida, or Fadi Rawashdeh for more information.

INVESTMENT OPPORTUNITY - Hampton Inn & Suites Houston-Westchase 

HVS, is pleased to present the opportunity to acquire the 82-key Hampton Inn & Suites Houston-Westchase, a limited-service asset located in the historically strong Houston Westchase submarket. The owner-operated Hotel is currently underperforming the market; the Property is being sold unencumbered by management. A new investor will have the opportunity to “turnaround” operations by improving yield-management strategies, revitalizing sales and marketing initiatives, completing the PIP, and recapturing its competitive advantage. Please visit our listings or contact Eric Guerrero, James Rebullida, or Fadi Rawashdeh for more information.

INVESTMENT OPPORTUNITY - Best Western Plus Lake Jackson Inn & Suites 

HVS, as the sole and exclusive advisory firm to Ownership, is pleased to present the opportunity to acquire the 64-key Best Western Plus Lake Jackson Inn & Suites, a limited-service asset located in Lake Jackson, Texas. Based on current pricing guidance, the Property is priced below replacement cost at $89,000 per key. To construct a similar limited-service asset with comparable amenities, the estimated all-in investment would be a minimum of $100,000 to $110,000 per key. Please visit our listings or contact Eric Guerrero, James Rebullida, or Fadi Rawashdeh for more information.

INVESTMENT OPPORTUNITY - Holiday Inn Express & Suites Brookshire Katy Freeway 

HVS, as the sole and exclusive advisory firm to Ownership, is pleased to present the opportunity to athe underperforming, 75-key Holiday Inn Express & Suites Brookshire – Katy Freeway, a recently constructed, limited-service asset located in the historically strong Katy Freeway submarket. The Hotel is currently absentee owned and operated by a third-party management company but is being sold unencumbered by management. A new investor will have the opportunity to realize the significant upside of acquiring a recently constructed, absentee owned, underperforming asset at significantly below replacement cost. Please visit our listings or contact Eric Guerrero, James Rebullida, or Fadi Rawashdeh for more information.

HVS in the News 

• Approaches to developing and implementing a survival strategy for hotel owners facing COVID-19
• At NYU, STR and HVS look ahead to recovery
• STR's Final 2020 U.S. Hotel Forecast Adjusted Slightly Upward
• Voluntary chains vs. Corporate soft brand chains: Which branding strategy offers hotel owners more value?
• Hotel Development Pipeline to Slow: HVS