Hello, Can some one tell me what is cap rate in Motel/hotel P &L and how it is calculated? Thanks.

I am looking for a small motel to buy.
In Buying Property - Asked by Mahua M. - Feb 25, 2010
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Answer(s)

Jeannie L.
Broker/Agent
Fremont, CA

Look it up in Google.com
Type in Cap Rate, and you will get a load of sites that can answer that question as well as many other investor question!
Other sites:
www.ciremagazine.com/article.php?article_id=176
Check out CCIM.org's site, too, for many more resources.
Good luck,
Jeannie Llewellyn
Ivy Group Commercial Real Estate
Mountain View, CA

Feb 25, 2010
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Robert D.
Broker/Agent
Bellaire , TX

The "cap rate" means the capitalization rate or the value of the invested equity in the deal. For instance, if an investor buys a property for $10 million and the NOI (net operating income) is $1 million than the property has a 10% cap rate.

Feb 25, 2010
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Cutting Edge R.
Broker/Agent
Decatur, IL

Cap rate is NET INCOME (income minus all expenses) divided by Price Tag multiplied by 100 (to get the %) the higher the cap rate the better the deal.

Feb 26, 2010
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Gregory G.
Broker/Agent
San Francisco, CA

Uju, small motels are more often than not sold on price per key or grm. Where would you like to buy?
Gregory Garver - Commercial Real Estate Broker
Broker License# 01716531
(415)968-6065
gregory.garver@gmail.com

Feb 26, 2010
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Gregory G.
Broker/Agent
San Francisco, CA

Do not get too concerned with the CAP rate...
Gregory Garver - Commercial Real Estate Broker
Broker License# 01716531
(415)968-6065
gregory.garver@gmail.com

Feb 26, 2010
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John P.
Broker/Agent
Glen Burnie, MD

Large Hotels in todays market are 10% Cap and above on the East coast.

Mar 5, 2010
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nageswara c.
Owner/Investor
Murfreesboro, TN

what is running Cap rate for Mid scale hotel in Tn pl

May 19, 2011
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