article thumbnail

Hospitality Financial Leadership – What Are CAP Rates and How to Use Them

Hotel Financial Coach Blog

A capitalization rate, or cap rate, is a measure of the income return on an asset, such as hotel or rental property, relative to its purchase price. It is calculated by dividing the net operating income (NOI) of the asset by its purchase price. Luxury hotels tend to have lower cap rates than budget hotels.

article thumbnail

DiamondRock Hospitality Completes Sale of Westin Washington, D.C. City Center

Lodging

multiple on 2024 hotel EBITDA and a 7.5 percent capitalization rate on 2024 hotel net operating income, or a capitalization rate of 5.6 BETHESDA, MarylandDiamondRock Hospitality Company announced that on Feb. 19, 2025, it completed the sale of the 410-room Westin Washington, D.C. The sales price represents an 11.2x

Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

Sunstone Hotel Investors Completes Sale of Hilton New Orleans St. Charles

Lodging

ALISO VIEJO, California—Sunstone Hotel Investors, Inc. multiple on 2024 Hotel Adjusted EBITDAre and an 8.7 percent cap rate on 2024 Hotel Net Operating Income. announced that it has completed the sale of the 252-room Hilton New Orleans St. The sale price represents a 10.1x

article thumbnail

Pebblebrook Hotel Trust Closes Sale of Hotel Monaco Seattle

Lodging

BETHESDA, Maryland—Pebblebrook Hotel Trust announced that it closed on the sale of the 189-room Hotel Monaco Seattle in Seattle, Washington, for $63.3 For the trailing twelve months ended March 31, 2023, the hotel’s net operating income was $1.6 percent net operating income capitalization rate.

article thumbnail

MCR Refinances 16-Hotel Portfolio

Lodging

NEW YORK—MCR has refinanced a 16-hotel portfolio for $333 million, generating $51 million of net proceeds. In less than three years, MCR doubled the portfolio’s net operating income, increasing it from $15 million at acquisition to $36 million. percent cap rate on MCR’s cost basis in the hotels.

article thumbnail

Using Hotel Revenue Management to Increase Net Operating Income

Belza

Using Hotel Revenue Management to Increase Net Operating Income | Hotel Marketing

article thumbnail

MCR Completes Sale of Residence Inn by Marriott Philadelphia Langhorne

Lodging

Since the beginning of 2023, MCR has completed a series of dispositions totaling seven hotels for gross proceeds of $174 million, or $210,000 per key. By completing its business plan, MCR doubled the hotel’s net operating income throughout its ownership.