PKF: Good Times Ahead for Hotel Industry

ATLANTA—Hotel profits are up. Debt is more available. Cap rates are stable. And values are expected to rise in the near-term. That’s the story from PKF Consulting (PKFC). The firm just released its annual Hospitality Investment Survey, which tracks changes in hotel investment and financing criteria for the past 12 months.

“With supply growth forecast to remain below the long-run average, the outlook for exceptional returns on hotel investments appears to be positive,” says Scott Smith, vice president in PKFC’s Atlanta office. “The only outstanding question among the respondents to our survey is ‘how long can the industry maintain this peak performance?’”