Hospitality Property Appraisal: Expert Valuation Services for Hotels, Motels, Resorts, and Lodging Facilities

Hospitality property valuation requires specialized knowledge and experience to accurately assess these unique and often complex assets. At RDOS Appraisals & Consulting, we provide comprehensive hospitality property appraisal services that consider all aspects of these specialized properties, from location and market dynamics to operational performance and brand affiliation.

Types of Hospitality Properties We Appraise

Hotels

• Luxury hotels

• Full-service hotels

• Limited-service hotels

• Extended stay properties

• Boutique hotels

• Convention hotels

Motels

• Economy motels

• Roadside properties

• Highway-oriented lodging

• Motor courts

• Budget accommodations

Resorts

• Destination resorts

• Beach/waterfront resorts

• All-inclusive resorts

• Spa/wellness resorts

• Timeshare properties

Inns & Bed and Breakfasts

• Historic inns

• Boutique B&Bs

• Country inns

• Guest houses

• Small lodging facilities

RV Parks & Campgrounds

• Destination RV resorts

• Overnight campgrounds

• Seasonal camping facilities

• Glamping sites

• Mixed-use outdoor hospitality

The Complexity of Hospitality Property Appraisal

Hospitality properties present unique challenges in valuation due to their intertwined real estate and business components. Our experienced team at RDOS Appraisals & Consulting considers multiple factors specific to hospitality facilities:

Property Characteristics

• Room count and mix

• Facility age and condition

• Amenity offerings

• Public spaces

• Food and beverage outlets

• Meeting/event space

• Recreational facilities

Operational Metrics

• Average daily rate (ADR)

• Occupancy rates

• Revenue per available room (RevPAR)

• Departmental profit margins

• Gross operating profit

• Fixed expenses

• Management fees

Market Position

• Competitive set analysis

• Brand affiliation

• Market penetration

• Seasonal demand patterns

• Guest segmentation

• Distribution channels

• Booking patterns

Our Hospitality Appraisal Methodology

RDOS Appraisals & Consulting employs a thorough approach to hospitality property valuation, utilizing all three traditional approaches while emphasizing the methods most relevant to each specific property:

Income Approach

As the primary method for most hospitality properties, we analyze:

• Historical operating performance

• Market-derived occupancy and rate projections

• Departmental revenue and expense ratios

• Fixed expenses

• Reserve for replacement

• Market-derived capitalization rates

• Discounted cash flow analysis

Sales Comparison Approach

We maintain extensive databases of hospitality property transactions to:

• Identify comparable properties

• Analyze price per room metrics

• Consider revenue multipliers

• Account for market conditions

• Adjust for location, condition, and brand differences

• Evaluate comparable cap rates

Cost Approach

For newer properties or those with unique attributes, we examine:

• Current replacement costs

• Site improvements

• FF&E (Furniture, Fixtures & Equipment)

• Physical deterioration

• Functional obsolescence

• External obsolescence

• Land value

Key Considerations in Hospitality Property Valuation

Market Analysis

• Local and regional economic trends

• Tourism drivers

• Corporate demand generators

• Seasonality patterns

• New supply pipeline

• Group/meeting market activity

• Barriers to entry

Facility Assessment

• Property condition

• Renovation history and needs

• Brand standards compliance

• Technological infrastructure

• Energy efficiency

• ADA compliance

• Life safety systems

Operational Review

• Management efficiency

• Marketing effectiveness

• Revenue management strategies

• Labor cost controls

• Utility consumption

• Maintenance practices

• Guest satisfaction metrics

Why Choose RDOS Appraisals & Consulting?

Industry Expertise

Our appraisers understand the unique aspects of hospitality properties and stay current with industry trends, brand standards, and changing market dynamics.

Comprehensive Analysis

We provide detailed evaluation of both the real estate and business components, including:

• Physical asset value

• Operating performance

• Market position

• Brand contribution

• Management effectiveness

• Capital expenditure requirements

Quality Reporting

Our hospitality property appraisal reports are:

• CUSPAP compliant

• Thoroughly researched

• Clearly presented

• Well-documented

• Defensible

• Delivered on time

When You Need a Hospitality Property Appraisal

Our services are valuable for:

• Property acquisition or disposition

• Financing and refinancing

• Portfolio valuation

• Partnership disputes

• Property tax appeals

• Insurance requirements

• Investment decision-making

• Estate planning

The RDOS Hospitality Appraisal Process

1. Initial Consultation

   • Understand client needs

   • Define scope of work

   • Establish timeline

   • Request necessary documentation

2. Property Inspection

   • Thorough site visit

   • Room inspections

   • Amenity evaluation

   • Competitive set tours

3. Market Analysis

   • Economic research

   • Supply and demand assessment

   • Competitive analysis

   • Performance benchmarking

4. Financial Analysis

   • Historical performance review

   • Expense ratio analysis

   • Pro forma projections

   • Capitalization rate development

5. Valuation

   • Application of appropriate methodologies

   • Multiple scenario testing

   • Sensitivity analysis

   • Reconciliation of value indicators

6. Quality Review

   • Internal peer review

   • Data verification

   • Analysis confirmation

   • Report refinement

7. Report Delivery

   • Complete documentation

   • Supporting exhibits

   • Client consultation

   • Follow-up support

Contact RDOS Appraisals & Consulting

For expert hospitality property appraisal services, contact RDOS Appraisals & Consulting. Our experienced team provides accurate, reliable valuations to help you make informed decisions about your hospitality property investments.