Western and Southern Hotels Lead the Rest of the U.S.

Investor appetite in hospitality properties in Western and Southern U.S. is growing due to higher revenue per room (RevPAR) growth, healthy occupancy and rising tourism, according to industry experts.

U.S. hotels posted average revPAR growth of 16 percent from 2014 to 2018, and, of the 12 areas that outperformed this growth, 11 were either in Western or Southern areas, according to a Marcus & Millichap report. Investors have already been noticeably attracted to this areas, as close to 50 percent of transaction volume in the hospitality sector in 2018 occurred in either Western or Southeastern markets, according to a Cushman & Wakefield report. Those markets will likely continue to lead the pack in terms of investment activity in 2019, according to Mark Capasso, executive director of the hospitality and gaming group at Cushman & Wakefield. Robust hotel sales volume in the sector at large should also continue this year.”