Led by David Fuller (MAI), a team of professional hotel and commercial real estate appraisers at HVS Washington, D.C. has devised a revolutionary index for use in accurately forecasting future hotel demand based on employment growth in a metropolitan market. The HVS Employment-Hotel Growth Index employs a series of formulas to process data on employment trends, office space absorption, and hotel supply and demand. The results of the calculations made with the index yield heretofore unexplored strategies for gauging future hotel demand in a market and analyzing past trends. The HVS Employment-Hotel Growth Index can be found online online by clicking here: www.hvs.com/Jump/?aid=3420.
“The long-supposed correlation between employment growth and hotel demand can in fact be quantified,” said Fuller, “and we are able via the index to calculate a reliable ratio of room nights generated per new job created in a market. Our test case was the Washington, D.C. market, where employment trends, office occupancies, and hotel performance are consistently strong. But the index can be adapted to analyze hotel demand in most primary and secondary markets in the U.S.”
The publication of the HVS Employment-Hotel Growth Index follows a symposium in which David Fuller and Gregg Otten presented the team’s methodology and findings to an audience of some 60 bankers, brokers, developers, and management company representatives from the hotel industry. The symposium was held on July 24 at the Hotel Monaco in Washington, D.C. HVS founder and President Steve Rushmore was also on hand to present findings from the 2008 Hotel Valuation Index, which bear on such issues as the impact of the mortgage crisis on U.S. hotel values and U.S. markets that are expected to improve or decline going forward. Mr. Rushmore’s presentation, Hotel Valuation and Transaction Trends for the U.S. Lodging Industry, can be found online online by clicking here: www.hvs.com/Jump/?f=2589.pdf&c=3348.
HVS Washington, D.C. brings a staff of hands-on professionals and industry veterans to serve the needs of hotel investors, buyers, sellers, owners, and operators. Services include single-asset and portfolio hotel appraisals, market and project-feasibility studies, franchise evaluations, and appraisal reviews. The staff’s expertise also extends to the realm of mixed-use properties, such as those combining office, retail, and residential components. Please contact Managing Director David Fuller for assistance with your consulting and valuation needs or inquiries into the HVS Employment-Hotel Growth Index.
HVS is client driven and dedicated to providing the best advice and services in the industry. Please visit us at www.hvs.com to learn how HVS can successfully lead your next venture into the realm of hospitality.
David Fuller, MAI 1820 Jefferson Place, NW Third Floor Washington, D.C. 20036 Phone: 202.828.9666 Fax: 202.828.9661 Email: firstname.lastname@example.org