Hotel Valuation Calculator

Estimate the value of a hotel property using the Capitalization Rate (Cap Rate) method, a common approach in commercial real estate.

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Understanding Hotel Valuation

The Capitalization Rate method is a simple yet powerful way to value an income-producing property like a hotel. It relates the property's income to its value in a specific market.

Formula: Hotel Value = Net Operating Income / Capitalization Rate

A lower Cap Rate implies a higher valuation and lower perceived risk, while a higher Cap Rate implies a lower valuation and higher risk.

Frequently Asked Questions

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