Hotel Valuation Calculator
Estimate the value of a hotel property using the Capitalization Rate (Cap Rate) method, a common approach in commercial real estate.
Quickly determine the market value of your hotel based on its income.
Assess the potential return on investment for buyers and sellers.
Understand your property's value in the context of the current market.
Results
Enter values and click Calculate to see results
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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