Steve Rushmore, founder of HVS Consulting delivered a presentation at the NYU International Hospitality Industry Investment Conference today that laid out an incredibly rosy near future for the hotel industry.
After the dismal 2006-2009 period when the value of an typical U.S. hotel room dropped from $99,000 to $56,000, the industry waited for the numbers return to pre-crash values. In 2012, the value reached $94,000 and 2013 should finally see the 2006 mark surpassed with a $106,000 average value; by 2015 this is project to rise to $133,000.
The industry will also see some shifts in major cities over the next three years, as New York will slip down in the rankings of value per room.
|San Francisco||$306,000||San Francisco||$606,000|
|Washington, D.C.||$255,000||New York||$565,000|
|San Diego||$148,000||San Diego||$252,000|
It’s not just about existing hotels, though: Rushmore pointed to record lows for hotel mortgage interest rates. He finished his presentation with the assessment: “Today is the best opportunity to buy, sell or develop hotels since 1991”