USRC Mid-Year 2025 Hotel Investor Survey

Full-Service Capitalization Rates Increase while Limited-Service Largely Flat

COLUMBUS, OH, UNITED STATES, July 30, 2025 /EINPresswire.com/ -- The results of the Mid-Year 2025 Hotel Investor Survey indicate a return to modest capitalization rate expansion for full-service hotels, following the contraction in the previous survey. Rates for limited-service hotels continued largely unchanged.

The capital markets remain quite volatile, as investor focus includes Fed direction, tariff/trade war impacts, and overall economic growth prospects. However, weakened summer travel demand thus far in many major markets has dampened some of the emerging optimism that was seen earlier in 2025.

While lowering inflation rates previously were perceived as a positive for reducing operating costs, the current survey shows an increase in expense growth projections. Additionally, with slower demand trends overall, ADR growth has fallen from the previous survey, and now is below expense growth projections, leading to some possible concerns for flow-through and NOI growth. Again, the concern appears to be concentrated in the full-service sector, as ADR growth is unchanged for limited-service hotels.

The complete survey, including data on capitalization rates, discount rates, ADR and expense growth expectations, marketing time, and other data for both full-service and limited-service hotels can be ordered through the company’s website at www.usrc.com, and clicking “Publications”.

Peter Hathaway, MAI, ISHC
US Realty Consultants
phathaway@usrc.com
+1 614-695-4438

Peter Hathaway
US Realty Consultants
+1 614-551-7585
email us here