Cornell Hotel Indices: First Quarter 2022 Beware the Ides of March

Hotels in gateway and non-gateway cities continue to post positive performance, but hotels in non-gateway cities are experiencing greater gains. Moving average trend lines show that prices for both large and small hotels are remaining above averages indicating they are still a buy.

This may soon change. The prediction at this point suggests a slower to negative price momentum for both large and small hotels near term.

“The caution comes from the spike in interest rates which has a tendency to cool the real estate market whether it be hotels or single-family homes,” says Crocker H. Liu, the Robert A. Beck Professor of Hospitality Financial Management at the Cornell Peter and Stephanie Nolan School of Hotel Administration.

Read “Beware the Ides of March” in the Cornell Hotel Indices: First Quarter 2022,” a joint publication of the Center for Real Estate and Finance (CREF) and the Center for Hospitality Research (CHR) at Cornell University.

About the Authors

Crocker H. Liu is a professor of real estate at the Cornell Nolan School where he holds the Robert A. Beck Professor of Hospitality Financial Management. His research interests are focused on issues in real estate finance, particularly topics related to agency, corporate governance, organizational forms, market efficiency, and valuation.

Adam D. Nowak is an associate professor of economics at West Virginia University. He is a former research analyst in charge of constructing residential and commercial real estate indices for the Center for Real Estate Theory and Practice at Arizona State University.

Robert M. White, Jr., CRE, is the founder and president of Real Capital Analytics Inc., an international research firm that publishes Capital Trends Monthly. White is a noted authority on the real estate capital markets with credits in The Wall Street Journal, Barron’s, The Economist, Forbes, The New York Times, and the Financial Times, among others.