• End of February hospitality update

    by  • March 4, 2012 • CRE, Economics, General

    Quick update on hospitality – which seems to be regressing a bit from an optimistic start of the year to a moderate growth from 2011.

    More specifically, at the national level occupancy grew 2.3% YoY (for the week ending dFeb 25th) to an average of 61%, the average daily rate grew 4.6% to $103.84 and RevPAR grew 6.9% to $63.38. All in all, as an asset class, Hotels seem to be recovering – and with steady growth over 2011, 2012 still looks to be a window of opportunity for investors to find value before hospitality recovers to its pre-recession average economic performance and values.

    On the local level, Texas is showing solid growth.  Houston occupancy growth YoY was only beaten my New Orleans – with Houston occupancy rising 11.6 % to 71.6%. Houston RevPar was also strong, showing growth of 21.6% to a rate of $73.34.

    Houston definitely benefited from the NBA All-star weekend as well as the start of the Houston Livestock and Rodeo – which will probably show moderate growth in all metrics for the next month – we’ll have to wait and see.

    From Calculated Risk

     

    About

    Patrick Sprouse has over a decade of experience in the commercial real estate sector. Mr. Sprouse has held numerous positions in commercial brokerage, real estate technology and executive operations on regional, multi-market and national scales. Currently Mr. Sprouse is providing management and technology consulting service for a private real estate services company based in Washington, DC with over $1.5 billion in 2015 revenue. Mr. Sprouse has an extensive background in business management, sales engineering, project management, software selection and business analysis as well as organizational change and brand management.

    http://www.patricksprouse.com