Hospitality on both a national and greater Louisville level continues to see strong valuations into 2024 despite significant new construction supply in the pipeline. RevPAR in Kentucky and Tennessee has grown 28% over the last 5 years. Available hospitality inventory has been thin further pushing valuations higher. Despite a number of high-profile boutique properties, the economy and midscale hotels are leading sales velocity throughout the Kentucky / Tennessee region. Midscale hotels are offering 10%-14% year-one returns depending on property condition and location. Limited 'on market' inventory is seeing strong investor demand due to attractive returns. Cap rates outside major metro areas start as low as 9% with cap rates in Lexington and Louisville significantly lower making for considerably high property values.

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VCG can assist in any of the following areas:
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• Investment Acquisitions & Dispositions

• Market & Demographic Analysis

• Feasibility Studies / Site Selection

• Asset Re-positioning

• 1031 Exchange Transactions

• Landlord & Tenant Services

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VCG has extensive experience with both boutique and flagged hotels. Whether limited-service, full-service, boutique, casino, extended-stay, or resort; our principals have extensive first-hand hospitality experience from a managerial, transactional and direct ownership perspective.