Is it a historic building?

If the terms, ADR, RevPar, are foreign to you, get a partner that understands hotel operations and has a strong track record.I look at hotel financing transactions all the time and they are especially difficult now to secure and the primary reason for historical loan failures are inadequate management/experience.

My dad had a machine he bought about 100 a year in the one day at the tax sales and in the 50s and 60s there were companies that would buy 1000 or more in the few days during the sale.. this was San berdo and Riverside counties and Lake co and any county that had 1000s of historic old platted lots that were never developed.  

this is an age old question on BP..you have the Cash flow is the only thing crowd and appreciation is gambling .. and then you have those who invested in markets that historically appreciate who have gotten majorly rich over the last 7 to 10 years on appreciation with no cash flow to speak of.  

Can you find some data on this historically for your market?

While looking for a market there are some things to think about getting into that market not just price, the application of the market, the stability of the market for jobs/job growth, the long term of the market conditions in that market, and the historical trends in that market that you pick/look at.The areas that fit the things above that you feel good about are then narrowed down to price, price is a leading indicator on if you can do the deal or not, we have areas that are luxury, secondary markets and vacation markets that people invest in STRs (this area is the cheapest prices considered).

Recessions are also historically followed by several years of strong rent growth, therefore it's important to set up your investment with preservation of principal as a top priority.

I can give you historical interest and dividend crediting rates, but understand that each policy has a different mix of indexing strategies, different anniversary dates, etc.

When this is a historical analysis, it should tell you exactly what you made, including appreciation. 

4.875 is very low from historical standards.