Currently underway on a hospitality project in an urban location. I am about to submit our firm's request on the STR reports we are subscribing to throughout this development process. I wanted to inquire if any hospitality owners or developers had a preferred report(s) from STR.
I understand that all owners receive certain ones by nature of their product-type (please correct me if incorrect), but was unsure if developers additionally had a preference.
From my "testing", if you will, it appears a subscription to the Datacast is likely best, along with the Destination report. Seems they all have sufficient historicals that are embedded in the other options available.
Thanks for the help here!
What you want to do first is find the primary competitive properties (comp set) for the proposed hotel - either from a feasibility study or from your hotel manager who often conducts their own underwriting. From there, you'd likely want to order a 5-year STR Trend Report on the comp set. They're around $500, and in most cases Lenders request (some require) a STR Trend report before they even issue a term sheet.
As he said above, find the best local comps. Yes you'll need to at least have three years of RevPar data to show the lender and be able to back up your assumptions. Not sure about those other services, but in the hotel industry, STR is king.
PKF reports are also helpful for projecting future RevPAR growth for the market.
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