Investors don't just look at the building; they look at the income it generates. The Cap Rate Method

Ultra-high-end assets like the St. Regis cater to guests seeking unique experiences.

The cost to buy a hotel varies widely, ranging from under $1 million for a small rural motel to over $100 million for luxury city properties. Most professionals value hotels using a "price per room" (or "per key") metric, which typically falls between $75,000 for budget brands and over $1,000,000 for high-end luxury assets. 🏨 Estimated Costs by Hotel Type

Includes properties like Marriott Hotels & Resorts or Hilton Hotels & Resorts. : $1,000,000+ per room.

Example brands like Super 8 or Days Inn often trade at the lower end of this scale. : ~$160,000 – $170,000 per room. Common for brands like Comfort Inn or Best Western. Upscale/Full-Service : ~$318,000 – $400,000+ per room.