Example brands like Super 8 or Days Inn often trade at the lower end of this scale. : ~$160,000 – $170,000 per room. Common for brands like Comfort Inn or Best Western. Upscale/Full-Service : ~$318,000 – $400,000+ per room.
The most common way to determine value is by dividing the property’s by a Capitalization Rate (Cap Rate) . Formula : Value = NOI ÷ Cap Rate. how much is it to buy a hotel
💡 : Use a Hotel Value Calculator to get a rough ballpark figure based on local market data. 📈 How Value is Actually Calculated Example brands like Super 8 or Days Inn
The cost to buy a hotel varies widely, ranging from under $1 million for a small rural motel to over $100 million for luxury city properties. Most professionals value hotels using a "price per room" (or "per key") metric, which typically falls between $75,000 for budget brands and over $1,000,000 for high-end luxury assets. 🏨 Estimated Costs by Hotel Type Upscale/Full-Service : ~$318,000 – $400,000+ per room
Investors don't just look at the building; they look at the income it generates. The Cap Rate Method
Ultra-high-end assets like the St. Regis cater to guests seeking unique experiences.
Valuations are heavily influenced by the "chain scale," which categorizes hotels by their service level and average room rates. : ~$75,000 per room.