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Updated over 4 years ago on . Most recent reply
How to Analyze a Hotel
I have been presented a hotel that is for sale, but have no idea how to analyze it. Is it the same as an apartment? Do you ask for T-12 or vacancy rate? Any tips would be very helpful.
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Greg Dickerson
#2 Land & New Construction Contributor
#2 Land & New Construction Contributor
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- Charlottesville, VA
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Greg Dickerson#2 Land & New Construction Contributor
#2 Land & New Construction Contributor
- Developer
- Charlottesville, VA
Hotels are very specialized and require serious expertise especially right now. They are nothing like apartments. Hotels are a retail business inside of a real estate asset so you will be analyzing the P&L, Balance sheet and tax returns. There are lots of metrics and KPI's specific to the hotel industry you need to know in order to properly evaluate the deal not to mention the franchise agreement etc. if its a flagged hotel.