CORTE MADERA, CA— Karl Hoagland, chairman/CEO of Larkspur Hospitality Co. here, is among those anxious market-watchers who— so far— “see no movement downward on current hotel values.” Initially presenting his views on the current buy/sell environment during the course of the recently concluded Americas Lodging Investment Summit in Los Angeles, Hoagland maintained, “I think hotel values are remaining stubbornly high relative to the terrible operating environment and, as a result, we have not yet seen many transactions.” In his further estimation, “sellers are sanguine and have fond memories of the 2000 operating environment, while opportunistic buyers are looking for fire sales.” According to Hoagland, hotel industry operating RevPAR was down 16% in the fourth quarter of 2001…and more than double that level in many West Coast hotel markets. Moreover, he further contended January has similarly not seen substantial improvement. “The difference between now and the early 90s is sentiment,” said Hoagland. “Its not going to be as easy for opportunists to buy hotels from the trash heap, hang on to them for a few years and then flip for much higher prices. “This is even more the case in the Western states, where memories of the ebullient times of 2000 are still fresh— and where development is extremely difficult and expensive. So unless there is another severe downturn— other than distressed hotel owners facing capital maturities— we dont see hotel values dropping to levels commensurate with risks and low cash-flow levels,” Hoagland concluded.