Hospitality Hotel Motel Appraisal Services


Feasibility Study for Proposed Hilton Home2 Suites- Merrillville, IN

Hospitality means hotel/motel business. This can be small, "mom and pop" bed and breakfast properties, all the way up to national corporations operating flagged (branded) hotel properties, such as Marriot or Hilton.

Appraising hotel properties involves valuing the overall Going Concern business. This includes not only the real estate, but also physical personal property like FF&E (furniture, fixtures and equipment) and Intangible Assets such as Business Value and Goodwill. The appraisal process is critically dependent upon obtaining high quality data. This we purchase through a top-rated, national data vendor.

The data establishes supply and demand and allows us to estimate revenues and expenses. RevPAR (Revenue per Available Room) is calculated by multiplying the Occupancy Rate by the hotel's Average Daily Room Rate. All of this along with estimated expenses translate into EBITDA (Earnings before, interest, taxes, depreciation and amortization). Using this result, we can accurately value the Going Concern based on an EBITDA Multiplier that other property purchasers are paying in the marketplace.

Recently, we performed a feasibility analysis to provide a potential hotel investor with our opinion of the likelihood of success for a new hotel development project. We suggested a flag, based upon Market Gap analysis, giving the owner the greatest probability of success. They are in the process of further expanding their holdings and have returned, to have us evaluate another possible new development.

We offer Hospitality Hotel Motel Appraiser / Appraisal Services in Denver, Lakewood, Centennial, Commerce City, Wheat Ridge, Aurora, Littleton, Englewood, Lonetree, Longmont, Louisville, Loveland, Northglenn, Parker, Thornton, Westminster, Arvada, Boulder, Brighton, Broomfield, Castle Rock, Golden, Greenwood Village, Highlands Ranch, Lafayette and the entire Denver Metro area