Sunday, September 15, 2013

Marcus & Millichap Forecasts Capital Pursues Hotel Sector Upswing




WALNUT CREEK, CA – Marcus & Millichap forecasts a solid, though muted, pace of economic growth will drive improvement in national hotel performance in 2013. Nationwide,

Hotels are riding positive momentum early in the second half of 2013. Record room nights in July signal strong results for the peak summer season and indicate that leisure travel has suff ered little from reduced take-home pay due to higher payroll taxes.

The outlook for the sector remains upbeat through the second half of the year as the economic momentum, despite hurdles, remains sturdy and development remains contained. 

However, given the hotel industry’s penchant for overbuilding, the recent increase in construction projects underway in some markets and chain scales merits monitoring.

Some oil and gas markets, and upscale chains in particular, bear a higher risk of over-development. Outside of a few states and chain scales, however, construction lenders are generally choosing well-sponsored properties and chain scales that meet under-served demand in a market and are forsaking projects where demand does not justify additional supply .


For a complete copy of the company’s news release, please contact:

Gina Relva
 Public Relations Manager
 Marcus & Millichap
2999 Oak Road
Suite 210
Walnut Creek, CA 94597
 (925) 953-1700 ext. 1716
(510) 999-1284 mobile
(925) 953-1710 fax

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