The Plasencia Group Expects Hotel Values to Remain Strong in New Orleans Through 2019
Tampa, FL - December 8, 2015 - The Plasencia Group recently hosted an executive roundtable in New Orleans that brought together owners of some of city's best-known and most successful hotels. The gathering, which also included presentations by local tourism industry officials, covered a variety of topics ranging from the opportunities and challenges faced by New Orleans hotel owners and operators, to the state of the lodging investment environment in the Crescent City. The mood of roundtable participants was overwhelmingly bullish, with most believing that the market will continue to be an extremely attractive investment target for the next three to four years.
Local owners and institutional investors in attendance also cited potential challenges to their businesses that include increasing competition from other cities, increasing property tax assessments and the desire to see more growth in corporate business travel. But overall, event participants were ebullient about the positive efforts such as the number of future group accounts now booked for the city, announced improvements to the convention district and airport, and focused efforts to provide a cleaner and safer French Quarter.
Lou Plasencia, Chief Executive Officer of The Plasencia Group, stated, “Despite some challenges faced by the New Orleans lodging industry, there is enormous opportunity ahead in terms of increasing hotel values for owners and investors. Barring a catastrophic event, we anticipate that the market will continue to see impressive transaction pricing and volume through at least 2019.” He pointed to indicators such as strong sales volume, historically high price-per-key metrics, growth in occupancy and strong revenue per available room (RevPAR) figures. He added, “New Orleans is definitely on a roll.”
Robert Wiemer, The Plasencia Group's Senior Vice President - Southwest, added, “The expansion of the Ernest N. Morial Convention Center and an adjacent hotel will go a long way to expanding the base of convention and group business. That, along with security improvements in the French Quarter and favorable labor conditions, should continue to strengthen the lodging investment environment in New Orleans.”
The Plasencia Group's investment sales team has served as advisor on over twenty hotel transactions in Southeastern Louisiana in the last decade, the most recent being the DoubleTree by Hilton at 300 Canal Street in February 2015.#
The Plasencia Group is a multi-faceted, full-service hotel investment and consulting firm offering: Transaction Services, Capital Markets, and Consulting & Advisory Services, serving clients through its U.S. regional offices. For more information, please visit www.TPGhotels.com.
Contact:
Jodie Orozco
[email protected]
813-932-1234
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