Mumford Company, a company that has been in full service since 1978, has predicted strong sales results for the first half of 2019 in the Hotel business. The anticipated company wide operational metrics include the average deal size and pricing per unit which is yet to continue the increases seen in the hotel business over the past few years.
“Transaction volume is clearly up, and the pace of new listings has increased significantly as owners evaluate property-level operating results about long term investment objectives,” said Ed James, managing principal, Mumford Company.
“There is still plenty of runways ahead in this market cycle, and financing for reasonably underwritten acquisitions remains readily available.”
It is believed that Mumford Company has in the recent past closed down several properties including Virginia: Wingate by Wyndham Cambridge, Fairfield Inn and Suites, Hampton Inn Charlottesville, Ohio and the Holiday Inn Express.
“Market conditions indicate the supply and demand curve has tilted toward the supply side in many markets potentially impacting future earnings. This should lead to a significant increase in inventory this year,” said Steve Kirby, managing principal, Mumford Company.
“Debt and equity continue to be available, and even if interest rates increase slightly later this year, Mumford Company believes it will have little impact on deal flow. We continue to review our clients’ portfolios to ensure existing assets fit or determine a disposition strategy to maximize returns.”