...so, no, much of the decline will be the result of tight credit available to the buyers. Decline in value based on revenue loss won't be that significant. If anything, you'll be able to get a pretty good one for a lower room revenue multiplier for awhile - 3x room revenue, as low as 2x for a fixer-upper (like paying below $800 or so for a car car, you know if you pay below 2.5x, you're buying a few problems, just as if you find a $500 car...) If you pay much more than 3x, you want to see pristine property condition, maybe very new construction, and high barriers to entry in the market. This isn't so much a market decline as a correction. Hotels have been a bit overvalued for a few years now and this ought to set things right.
May 11, 2009