What cap rates are realistic for hotel acquisitions in the I-Drive corridor in 2026?
I-Drive hotel cap rates in 2026 span a 200-basis-point range depending on service level, flag affiliation, occupancy track record, and proximity to Epic Universe. Full-service convention hotels with OCCC adjacency and institutional flags (Marriott, Hilton, Hyatt) trade at 6.0–7.0% cap rates. Upper-upscale and select-service properties with strong RevPAR track records and Epic-adjacent positioning trade at 6.5–7.5%. Limited-service hotels on I-Drive and Universal Boulevard are trading at 7.0–8.0% going-in cap rates. The upper end reflects assets with operational issues or near-term capital needs, the lower end reflects stabilized, well-operated properties with institutional flags.