The hotel industry around the world benchmarks its financial success on REVPAR which is the combination of Occupancy and Average Rate. However REVPAR is a Rooms Revenue measure and does not take into account operating expenses, capitalization rates and valuations.
HVS developed a much better measure of financial success with the development of the Hotel Valuation Index (HVI). The HVI is based on a hotel Revenue, Expenses, the market’s Capitalization Rates to estimate value. Hotel Investors find that a hotel’s value is much more important and a hotel’s rooms revenue.
The HVI monitors the annual percentage change in the values of a typical hotel within specific markets. Additionally, the index enables the ranking of each market relative to the average for the region.
HVS has an HVI for the following 5 Regions:
- Africa
- Asia/Pacific
- Canada
- Europe
- United States
The HVI is available as a hard copy report for the Asia/Pacific, Canada and Europe Regions. It is also available as an interactive website for all 5 Regions.
Price for the Reports and access to the interactive website: Free