MIAMI-The hospitality-lodging market saw the greatest decline in 2010. Now, the sector has the second-best growth prospects after multifamily. So says Integra Realty Resources’ first quarter 2011 Commercial Property Index.
While this quarter’s survey shows that lodging properties experienced the greatest value decline in value over the past 12 months, the sector is expected to increase 2% in the coming six months. After lodging, the remaining sectors increased in value over the past year, with office having the smallest increase (0.25%) and multifamily experiencing the largest increase (7%).
“In April, hotel rooms in the Orlando MSA were at 80% occupancy,” Steve Matonis, principal of Integra Realty Resources-Orlando, tells GlobeSt.com. “That is the first time the local market has topped 80% since March 2008. Another indication that people are traveling again is that the Orlando International Airport reported its busiest month in three years.”
When comparing the regions’ performances in the first quarter, the east has surpassed last quarter’s western region as the best performing region. The east’s lodging sectors saw a 2% increase. In the next six months, property values are expected to increase or stabilize across the country. In the east, lodging properties will increase 2%.
“This segues into Disney at O-Town. Disney reports on May 10 that while profits are down, guest spending and hotel occupancy rose at its US theme park resorts,” says Matonis. “Is the recession truly over in the land of the mouse? Stay tuned…”
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