The borrowing cost of debt financing continues to remain stable, while the cost of equity financing has declined relative to the previous period. Mixed signals exist as to the future direction in the price of large hotel properties near term but prices for small hotel properties should continue to rise in the next quarter. We continue to hope that operating performance as measured by EVA will finally become positive at best and or continue to remain at breakeven at worst. This is report number 14 of the index series.
Liu, C. H., Nowak, A. D., & White, R. M. (2015). First quarter 2015: March madness: Hotels remain hot [Electronic article]. Center for Real Estate and Finance Reports Hotel Indices, 4(2), 1-20.