Report: hotel values fell 14% in 1991.With the continuous downslide down·slide n. A downward course; a decline: "a growing concern among . . . board leaders about whether the economy could be headed for a downslide" Andrée Brooks. in the hotel industry, hotel values fell 14 percent in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. in 1991 according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. the latest Hotel Valuation Index (HVI HVI Home Ventilating Institute (AMCA) HVI High Volume Instrument (cotton grade classification) HVI High Viscosity Index HVI Home Ventilation Institute HVI Hypervelocity Impact HVI High Value Individual ). When combined with the 5 percent drop in 1990, most hotels have lost approximately 20 percent of their asset value in the past two years. According to Stephen Rushmore, president of Hospitality Valuation Services, and publisher of the HVI, this decline has effectively eliminated the equity component in hotel projects and has led to a net loss of 8 percent in value over the past five years. "On a more local basis," Rushmore added, "Philadelphia hotels suffered the greatest loss in hotel value in 1991, declining 37 percent. In fact, since 1986, Philadelphia hotel values have decreased 54 percent. " Also suffering significant declines in 1991 were Las Vegas Las Vegas (läs vā`gəs), city (1990 pop. 258,295), seat of Clark co., S Nev.; inc. 1911. It is the largest city in Nevada and the center of one of the fastest-growing urban areas in the United States. (34 percent), Boston (31 percent), Los Angeles (28 percent), Orlando (25 percent) and New York City New York City: see New York, city. New York City City (pop., 2000: 8,008,278), southeastern New York, at the mouth of the Hudson River. The largest city in the U.S. (23 percent). In 1991 only six markets showed increases in hotel values, while 18 suffered defines. On the positive side, Denver, Houston and New Orleans, markets that all started the hotel industry's downward trend in the 1980's, are now leading the recovery. The most impressive gain in value was registered in Minneapolis, a 27 percent increase. As the economic recovery continues, hotel occupancies and room rates are expected to slowly increase, especially if the supply of hotel rooms remains relatively unchanged. When this upturn becomes more pronounced, hotel earnings should escalate rapidly, bringing hotel values up with them. As Rushmore has said several times in the past year, "Owners should hold on to their hotel properties for the next two to four years. It is a great time for hotel buyers, not so good for hotel sellers." HVS HVS Human Visual System HVS Herpesvirus Saimiri HVS High Voltage Software HVS High-Volume Sampler HVS Hard, Very Severe (rock climbing grade) HVS Hue, Value, Saturation (color model, aka HLS) , in association with Smith Travel Research, designed the HVI to provide hotel owners, lenders and operators with a benchmark for tracking hotel value trends in individual market areas. The 1991 HVI focuses on 24 different market areas, as well as the country as a whole. |
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