Q1 Hotel Prices Show Moderate Gains, Some Declines

Although hotel sale price momentum is still positive over last year’s numbers, U.S. regional indices show some signs of decline over the quarters, according to an analysis of Cornell Hotel Indices through Q1, 2023. The paper, Mixed Signals Portend Greater Uncertainty Ahead, was coauthored by Crocker Liu, Robert A. Beck Professor of Hospitality Financial Management and a professor of real estate at the Cornell Peter and Stephanie Nolan School of Hotel Administration.

Buying opportunities still exist, but momentum is faltering in the Mid- and South Atlantic regions. The largest price gains are in the Mountain, New England, and Pacific regions. “Investors should brace themselves for strong headwinds,” said Liu.

The authors’ analysis was jointly published by the Center for Real Estate and Finance and the Center for Hospitality Research at the  Cornell Peter and Stephanie Nolan School of Hotel Administration.

About the Authors

Crocker H. Liu is a professor of real estate at the 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 was the 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, an international research firm that provides real time data concerning the capital markets for commercial real estate and the values of commercial properties and publishes Capital Trends Monthly. White is a noted authority on the real estate capital markets.