‘$100 Room Rate – $100,000 Room Value’ Rule of Thumb

Andrew  —  November 17, 2011 — Leave a comment

Morroco Marrakech Hotel Investment

This is a quick and easy way to understand the relationship between room rate and hotel valuation. 

How much should you invest in your resort hotel based on a market achievable net room rate?

Of course, as in any rule of thumb you need to understand the assumptions as well as the “if, then, but” exceptions!

Here’s a spreadsheet for you to download and explore this rule of thumb further.

Download (XLSX, 10KB)

 

Photo: marcp_dmoz

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