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Hotels in gateway cities have outperformed hotels in non-gateway cities, with hotels in gateway locations rising 10 percent in the past year, compared to 6 percent for those in non-gateway cities.

  • Hotel operating performance scaled by price is still in the black based on economic value analysis (EVA), with returns continuing to exceed borrowing costs (for debt).
  • Transaction volume strengthened both on a quarter-over-quarter and year-over-year basis.
  • While our various pricing metrics point to continued positive price momentum for larger hotels at the expense of smaller hotels, we are concerned whether rising interest rates will put a damper on this momentum. A reading of our tea leaves suggests prices will continue to increase, but at a decelerating rate. This is report number 26 of the index series.

Supplemental File: Hotel Valuation Model (HOTVAL) We provide this user friendly hotel valuation model in an excel spreadsheet entitled HOTVAL Toolkit as a complement to this report which is available for download from


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