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What is a fair way to value a hotel for sale?

What specific points of data should I analyze?
In General Area - Asked by Raymundo F. - Oct 2, 2008
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Answer(s)

Marvin P.
Corporate Investor
Fort Myers, FL

I've been in the business for several years. Here's what I use: Cap rate, 5 year discounted cash flow, average daily rate, EBITDA multiple and room revenue multiple.

Oct 2, 2008
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Anthony B.
Owner/Investor
Glen Burnie, MD

Marvin, That is an accurate reply, however I wished you used a generic example. (i.e
a hotel containing 90 rooms with a daily average rate of $100 per night and a rev
Par of $64.75 has an asking price of 4mm....
If anyone can bring an detailed example to life, it is easier to understand the process.

Apr 18, 2009
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