2013 Outlook

Hotel investments are cyclical in nature. We are poised for a solid-to-moderate market recovery over the next 3-5 years. The strength of the recovery will be driven by the recovery of the U.S. economy. This recovery should recoup the loss of RevPAR seen in 2008 and 2009. The effect of that dramatic RevPAR loss has placed many hotels in “distress”.

This may be the best “buy” signal in this generation. There are many outstanding opportunities to invest at below replacement cost, reposition, renovate, manage and hold for 3-5 years, anticipating a 15% – 20% IRR.