Global Hospitality Report (January 23, 2017)

US Hotel Value Gains Moderate as RevPAR Growth Slows and Cap Rates Rise 
By Suzanne Mellen, MAI, CRE, FRICS, ISHC

Hotel assets continued to appreciate in 2016, but at a more modest pace due to slowing RevPAR growth and a rise in cap rates. The stock market rally following the election has led to cautious optimism about what 2017 will bring.

HVS Market Pulse: Why Aren’t Hotels Being Built in Ski Towns? 
By Brett Russell

Traditional hotel development in ski resort towns has slowed nearly to a halt, with barriers like limited land and high costs putting pressure on new builds. But hotel demand and performance are on the rise and the “barriers” may not be so imposing.

In Focus: African Hotel Market Update 
By Tim Smith

2016 was a positive year for the African hotel market, tempered by external factors. What should investors expect in 2017? This article discusses the highlights from 2016 and looks ahead to what can be expected in 2017.

Owners and Operators on the ‘Hot Seat’ at THINC Sri Lanka 2017 

With just two weeks to go, THINC Sri Lanka gears up for its 2nd edition in the capital city of Colombo. Expertly tailored by HVS, THINC Sri Lanka follows in HVS' tradition of organizing leading hotel conferences around the world and promises to live up to the reputation, once again, by creating an exceptional forum for knowledge-sharing, networking and collaboration. Among the many highlights at this year’s conference is the ‘Hot Seat: Owner – Operator Connect’. This concluding session at THINC Sri Lanka 2017 promises to entice and entertain, as panelists meet head-on to address critical questions about the alignment of owner and operator expectations (or the lack of it). To be moderated by HVS’ Chairman Asia Pacific and hot-seat specialist – Manav Thadani, the panel has strong representations from ownership groups and global hotel brands, namely Ama Maliduwapathirana, Director, Southern Group of Companies; Malinga Arsakularatne, MD, Leisure Travel & Aviation Group and Executive Director, Hemas Holdings; Sanjeev Gardiner, Group Chairman, The Galle Face Hotel Group; Shantha De Silva, Head - SW Asia, InterContinental Hotels Group, and William Costley, VP Operations - SE Asia & India, Hilton Worldwide.

Holiday Inn Express Edinburgh City Centre Sold  

International Hotel Properties Ltd (IHL) has purchased the Holiday Inn Express Edinburgh City Centre in Scotland out of administration for £17.7 million (£110,000 per room). The 161-room hotel will continue to operate under a franchise agreement with InterContinental Hotels Group and Redefine BDL Hotels will take over the property’s management. IHL now has a portfolio of nine hotels (1,135 guest rooms) across the UK. The hotel’s previous owner, the European Development Company (EDC), fell into administration in November last year, and EDC’s two other assets (a Holiday Inn and a Holiday Inn Express in Aberdeen, northeast Scotland) will be coming to the market soon.


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