The next six to twelve months is the time that investors and their hotel asset manager, who are planning to purchase hotel real estate, should look more seriously. Now that many hotel markets are improving and travel growth is expected along with net operating incomes at lodging properties on the rise, potential values for hotels should climb beyond replacement costs too. In a recent lodging industry report and due to ongoing conditions related with extended economic restoration, the specific all round information as part of the 2012 Winter USRC Hotel Investment Study remains optimistic. If you are a investor looking to buy full-service hotels, consider these report highlights from the perspective of a hotel asset manager: In general, investment statistics continue robust and anticipations for income gains manage to go beyond cost and expense growth. In contrast, total investment parameters may have settled by somewhat less bold predictions compared to the middle of Year 2011 USRC study, whilst full-service discount rates had been at their lowest levels in the studies history. Full-service capitalization rates went higher by something like 20 basis points to 8.1%, further up from 7.9% over the 6 calendar months previously. Yet, somehow it is still robust by historic measure. As yield requirements stay down, count upon revenue financial growth (shown by Average Daily Rate expectation) going beyond expenses growth estimations, thereby demonstrating continuous expectation of Net Operating Incomes recovering. However, one major market, namely San Francisco, is considered to have already rebounded to pre-recession levels if you are looking to buy a hotel here. Also, and in recent hotel valuations for a group of boutique hotels that I was asked to looked at as a possible court appointed receiver, the average price per key were $200,000 per room average with cap rates below 8% and a significant jump over the prior three years. Still, there are more signs of distress in the secondary and tertiary cities with an increase of hotel foreclosures being reported in those markets. If you are an investor group and hotel asset manager looking to buy now, it appears that the better investment opportunities are in the eastern and southern states.