Brown Nester Hospitality

  • Home
  • Our Team
  • Brokerage Services
    • Resources
  • Listings
    • Hotels
    • Land
    • Leases
  • Contact Us

Broker Opinion of Value

Abstract Background For Financial Concept.

Valuation Method

The purpose of the opinion of value is to estimate the present market value “as-is” of the fee simple or leasehold interest in the Hotel on a cash basis.

Income Approach

The Income Approach to value is generally the most relevant approach in evaluation investment type properties. Investors tend to purchase this type of property based upon anticipated net income, as well as the potential benefits of sheltering personal income from taxation. The Direct Capitalization method is also relevant in this Opinion of Value.

The Direct Capitalization method involves estimating the stabilized net operating income for the Hotel. This is the cash flow before debt service and taxes, assuming the property has reached its optimal level of long term occupancy, and all significant capital outlays for building improvements have been absorbed. The stabilized net operating income is then capitalized by the appropriate overall rate extracted from the market to yield an unadjusted capital value. Finally, all costs (if any incurred to reach stabilized occupancy) are subtracted from the capital value to yield an “as-is” value estimated for the subject property.


FREE OPINION OF VALUE

Fill out the below form and we will respond as soon as possible with a free brokers opinion of value.

*Required information is confidential and not shared

Brown Nester Hospitality Services
Coast to Coast

California
Moorpark, CA 93021
Office: (805) 496-9797
BRE# 01902546



Florida
Coral Springs, FL 33065
Office: (754) 264-6267
FLDBR# CQ1041620
  • Facebook
  • Twitter

Copyright © 2022 · Brown Nester Hospitality Services

Login