How To Perform A Study Of Your Property's Market
Most hotel/motel market studies and appraisals quantify the demand for transient accommodations using a factor known as a room night.
Selecting The Firm To Prepare Your Feasibility Study
Developing a new hotel or motel typically requires a feasibility study to verify market demand and to prove the project is economically viable.
Understanding Economic Life
Economic life is the period when improvements to a property contribute to property value. Hotels and motels have a definite life span of postive cash flow.
Don't Forget Your Waste Audit
Although you think you have audited and reviewed every aspect of your hotel's operations, i bet you have not performed a solid waste audit.
Real Estate Jargon Made Simple
Hotel appraisals and market studies generally come with their own language. This month's column will be devoted to defining some of those often used and sometimes misunderstood expressions.
The Valuation of Distressed Hotels
Today's hotel market is in a state of chaos. The overbuilding of the 1980s coupled with the recession of the 1990s has sent hotel occupancies in many parts of the country plummeting.
Understanding Economic Life
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.
Valuing Distressed Properties
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.
Seven Current Hotel-Valuation Techniques
Hotel Investors and appraisers use a variety of techniques to value hotels.
Cap Rate 101
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.