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Bottom for hotel prices?

A national survey conducted by Landauer Associates, the international real estate counseling firm, shows that conservative pricing will characterize the hotel market for the balance of the year, and those who can arrange financing will actively pursue acquisitions in the belief that hotel prices will not drop any lower.

Hotel investors and lenders, the report states, generally seem comfortable with the risks in today's market, however some say there is still too much turmoil in the market to invest. Many investors who see opportunities can't grasp them due to their inability to obtain financing. These are the observations of leading hotel investors and lenders surveyed by Sean F. Hennessey, senior vice president and principal author of Landauer's bi-annual "Hotel Investment Outlook."

Landauer notes that hotel investors' criteria are poorly suited to statistical interpretation, and survey respondents are more adept at describing the physical qualities they seek in a hotel than in quantifying their financial objectives. Many investors say their investment criteria are flexible depending on how much allure a specific property has. This "touchy-feely" position helps to explain the lack of precision inherent in hotel value estimates, Landauer reported. The just released "Hotel Investment Outlook" contains comments about the five most common valuation techniques favored by investors and lenders.

Copies of the "Hotel Investment Outlook" may be ordered from Sean F. Hennessey, senior vice president, Landauer Real Estate Counselors, 335 Madison Avenue, New York, New York 10017, (212)687-2323.
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Title Annotation:Landauer Associates report on hotel market
Publication:Real Estate Weekly
Date:Sep 16, 1992
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