How Do Changes in the 10-Year Treasury Rate Affect Hotel Capitalization Rates

by Jack Corgel, Ph.D., CBRE Consultant | May 27, 2022

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Key Takeaways

A concern among commercial real estate investors (especially hotel investors because of the high sensitivity to macroeconomic conditions) is a rate-driven economic slowdown that threatens property income growth. This article addresses the sensitivity of hotel cap rates to changes in the 10-year.