Hotel & Hospitality Property Appraisal Services

Hospitality Valuation Expertise

Hotels are operating businesses with real property components, and their valuation demands expertise that spans both disciplines. Unlike traditional commercial real estate where long-term leases provide stable income, hotels re-price their inventory nightly, making revenue management, brand positioning, and market dynamics central to the valuation analysis.

UnionMetric's hospitality practice is staffed by appraisers with specific hotel industry experience. We understand the operating metrics, brand dynamics, franchise economics, and capital requirements that determine hotel value. Our reports provide the depth of analysis that hospitality lenders and investors require.

Our Hotel Valuation Methodology

Our hotel appraisals employ all three approaches to value, with primary emphasis on the income approach using a discounted cash flow (DCF) model that explicitly forecasts occupancy, average daily rate (ADR), revenue per available room (RevPAR), departmental revenues and expenses, and undistributed expenses.

We derive our projections from detailed analysis of the subject property's historical performance, STR competitive set data, management and franchise agreement terms, and planned capital improvements. Our expense modeling follows the Uniform System of Accounts for the Lodging Industry (USALI) format, ensuring consistency and comparability.

The sales comparison approach analyzes recent hotel transactions on a per-room basis, with adjustments for brand, condition, market position, and operating performance. Our cost approach considers replacement cost less depreciation for the physical improvements and provides an important reasonableness check, particularly for newer properties.

Franchise and Management Considerations

Franchise affiliation significantly influences hotel value through brand recognition, reservation system access, loyalty program participation, and operating standards. Our appraisals analyze the specific franchise agreement—including fees, term, required property improvement plans (PIPs), and the brand's competitive positioning in the market.

Management contracts are similarly important. We evaluate whether the property is managed by the brand, an independent third-party management company, or the owner, and how the management structure affects operating efficiency, reported financial performance, and the property's appeal to potential buyers.

For properties facing upcoming PIP requirements, we estimate compliance costs and their impact on value, cash flow, and the owner's investment return. PIP timing and scope often drive transaction decisions, and our analysis helps stakeholders understand these capital requirements.

Hotel Types We Appraise

Our hospitality practice covers the full spectrum of lodging properties: select-service and limited-service hotels, full-service hotels with food and beverage operations, extended-stay properties, boutique and independent hotels, resort properties and destination hotels, economy motels and budget lodging, and conversion and adaptive reuse projects.

Each segment has unique operating characteristics, competitive dynamics, and investor expectations. Our appraisers have direct experience across all major segments and brands, enabling us to deliver credible valuations regardless of property type or market tier.

Nationwide Hotel Appraisal Coverage

UnionMetric provides hotel appraisals for national and regional banks, CMBS lenders, SBA loan programs, hotel investment companies, asset managers, and individual owners. We have appraised hotels in primary, secondary, and tertiary markets throughout the United States.

Our turnaround times are competitive, and we maintain current STR data subscriptions and proprietary databases of hotel transactions and operating metrics. Contact us today to discuss your hotel appraisal requirements and receive a customized proposal.