National Hotels Cap Rate Report


First quarter transactions point to a continuation of historically low hotel cap rates, but the lagging trends do not reflect the current post-COVID reality.  Record high RevPAR levels began a precipitous decline at the end of Q1 amid severe sector disruption caused by the pandemic. Upward cap rate pressure is expected in Q2, particularly in the Upper Upscale and Luxury segments and in Urban and Resort locations.
 
CBRE’s Valuation Cap Rate Reports include data compiled during the first quarter of 2020, when the potential adverse impacts of the COVID-19 pandemic were just beginning in the United States. CBRE Valuation & Advisory Services is dedicated to providing cap rate insights on a quarterly basis and benchmarking analytics based on historical data. We will continue to keep you apprised of the latest changes in market conditions throughout this unprecedented time.

HOTELS-Cap-Rate-Trend-Q12020_1

Source: CBRE Hotels Research, Q1 2020
Data points are confirmed closed transactions adjusted for assumed financing and reflect overall market trends.


U.S. Hotels Cap Rate Trends


Hotels-2020Q1-Cap-Rate-Table

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The quarterly Hotels Cap Rate Report is powered by CBRE Hotels’ proprietary Property Information Portal. The platform enables professionals and clients to leverage immediate access to our extensive databases and econometric forecasting tools. Our platform provides the foundation for the evaluation of hotel market performance, allowing our advisory professionals to stay ahead of changing market conditions.

Hotel Valuation Practice


CBRE is the largest national provider of real estate appraisal services in the country with more than 550 licensed appraisers in the United States. CBRE's hotel valuation practice has drawn from this large talent pool with more than 50 licensed appraisers who specialize in Valuation & Advisory Services, exclusively for the hotel industry. These professionals form the core of our hotel advisory team and ensure an experienced professional is responsible for each assignment in the U.S., Caribbean & Latin America.

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