| Purchase value of a property is determined by many factors
with a focus on its profitability and future trends.
The base value is the total revenue for the past 36-42 months
of the hotel. The following factors effect the value;
- Change in rooms offered in the market.
- Age of the hotel
- Condition of the property
- Franchise Terms and state of the contract
- Pending legal issues on the hotel or any entity effecting the
hotel
- ADR Trend
- Changes in local roads and streets by local, State or Federal
DOT
- Labor pool
- FF&E Condition and possible lease terms
- Insurability
- Geographical area (see Table 1)
And many other issues that could effect the value in
individual basis.
Table 1
Projected per-room change in value 2006-2008 |
| Market |
Per Room |
% Change |
| New York |
$152,136 |
39% |
| Oahu |
$117,218 |
32% |
| San Francisco |
$92,142 |
38% |
| Miami |
$88,858 |
38% |
| Chicago |
$69,788 |
36% |
| Anaheim, Calif. |
$67,017 |
39% |
| Fort Lauderdale, Fla. |
$64,555 |
38% |
| San Jose, Calif. |
$63,357 |
47% |
| Seattle |
$63,045 |
36% |
| Boston |
$55,924 |
25% |
| Los Angeles |
$55,846 |
28% |
| Denver |
$52,972 |
43% |
| Austin, TX |
$52,771 |
39% |
| Salt Lake City |
$49,387 |
38% |
| Atlanta |
$48,983 |
45% |
| Washington |
$48,558 |
20% |
| Charlotte, NC |
$48,131 |
48% |
| WPB-Boca Raton, Fla. |
$44,469 |
23% |
| San Diego |
$43,818 |
19% |
| Phoenix |
$43,417 |
25% |
| Dallas |
$39,847 |
36% |
| Minneapolis |
$37,381 |
34% |
| Philadelphia |
$36,642 |
30% |
| San Antonio |
$35,961 |
25% |
|
Source: HVS Hospitality
Services |
|
