Economic life is the period when improvements to a property contribute to property value. Hotels and motels have a definite life span of positive cash flow.
As more lodging properties run out of operating capital and are forclosed upon by their lenders, it becomes increasingly important for hotel buyers, sellers and lenders to understand the techniques utilized in valuing distressed facilities.
Hotel Investors and appraisers use a variety of techniques to value hotels.
Whenever people say they're planning to purchase a hotel, one of the forst questions asked of them is: "What capitalization rate are you using?" Cap rate, as it is called in the industry, has many meanings.
This article shows the pitfalls of RevPAR, and elaborates on the advantages of using a complementary performance measure, GOPPAR.
Toughen Underwriting Requirements
Interest Rates affecting Real Estate values
Hotel Loan and what they should cost you
Refinancig hotel costs
Factors both internal and external to a hotel property affect its value, and in turn, its property tax burden. In most cases, an experienced hotel appraiser, employing a proven appeal protocol, is needed to determine whether a property is unfairly assessed.