The fourth-quarter Market Pulse shows key indicators of economic and hotel investment market data, including yield rates, cap rates, and additional forward-looking metrics. Takeaways reflect that equity yields have dropped concurrent with interest-rate increases, keeping discount rates in check. Additional interest-rate hikes remain on the horizon in the coming months, which could shift this dynamic. Future hotel bookings continue to add modest room-rate increases and should keep occupancy strong, bolstered by a high employment rate and healthy economy, which should be sustained through 2019.
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