Hans Detlefsen

Guest Editor-In-Chief

Mr. Hans Detlefsen, MPP, MAI, is President and Founder of Hotel Appraisers & Advisors, LLC.

He has nearly 20 years’ experience providing hotel appraisal and consulting services. His team conducts feasibility studies and investment analyses for major hotel companies, real estate investment trusts, financial organizations, and state and local governments, among others. Hans advises boards of directors and supports cases involving hotel valuation disputes. He is a frequent industry author and speaker and a designated member of the Appraisal Institute.

Letter From the Editor

Welcome to the July edition of Hotel Asset Management Magazine; I am delighted to serve as Guest Editor-in-Chief. Our focus is on hotel valuation techniques and data trends affecting valuations, and it represents a months-long collaboration with some of the most highly-regarded leaders in the hospitality industry.

In my day job as the owner of a hotel appraisal and advisory company, I get the opportunity to review hundreds of hotel appraisals, feasibility studies, investment pitch books, and offering memoranda each year. These documents commonly center on two elements: (i) the projection of hotel income and (ii) the capitalization of these income projections into value indications. These twin components of hotel valuation mirror what are perhaps the two most frequently asked questions we hear from clients: Where are we in the hotel investment cycle? And, what’s happening to hotel capitalization rates?

Our five highly-regarded expert contributors bring a wealth of insights to answering these common industry questions. They represent a broad spectrum of backgrounds, including academia, consulting, investment banking, and underwriting. They are also very busy people with great demands on their time, so I am therefore deeply grateful to them for their generous and thoughtful contributions to this issue.

Their articles offer a variety of valuable insights for hotel owners and investors analyzing hotel values. Here’s a brief summary of them:

  • Kenneth Lusht, PhD, MAI provides a refresher on critical differences between direct capitalization and discounted-cash-flow valuation techniques.
  • Steven Hennis, MAI, ISHC, CHA illustrates the potential highs and lows of hotel investing and shares historical value appreciation rates in 15 major markets.
  • Emil Iskandar discusses how a better understanding of lenders’ perceptions can help sellers maximize the values of their hotels.
  • Gary DeWeese, MAI demonstrates how hotel appraisers and analysts can derive hotel capitalization rates from the publicly-traded REIT market.
  • Jan deRoos, PhD concludes the issue with an evaluation of the spreads between capitalization rates for hotels versus other types of real estate, noting that the elevated level of recent spreads between hotels and other types of real estate could be a good leading indicator of a maturing investment cycle.

I hope you will enjoy reading and thinking about their ideas as much as I have.

With kind regards,

Hans Detlefsen