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. That’s what this piece is all about.

article thumbnail

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

Lodging

percent capitalization rate on 2024 hotel net operating income, or a capitalization rate of 5.6 City Center for a contract price of $92.0 The sales price represents an 11.2x multiple on 2024 hotel EBITDA and a 7.5 percent inclusive of the company’s projected capital expenditures.

Insiders

Sign Up for our Newsletter

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

article thumbnail

Pebblebrook Hotel Trust Closes Sale of Hotel Monaco Seattle

Lodging

For the trailing twelve months ended March 31, 2023, the hotel’s net operating income was $1.6 percent net operating income capitalization rate. Based on the hotel’s operating […] The post Pebblebrook Hotel Trust Closes Sale of Hotel Monaco Seattle appeared first on LODGING Magazine.

article thumbnail

MCR Completes Sale of Residence Inn by Marriott Philadelphia Langhorne

Lodging

By completing its business plan, MCR doubled the hotel’s net operating income throughout its ownership. 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.

article thumbnail

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

Lodging

percent cap rate on 2024 Hotel Net Operating Income. Charles for a gross sale price of $47 million, or approximately $187,000 per key. The sale price represents a 10.1x multiple on 2024 Hotel Adjusted EBITDAre and an 8.7

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

Leverage Hotel Net Operating Income (NOI) with Direct Booking.

Belza

Leverage Hotel Net Operating Income (NOI) with Direct Booking Strategy | Hotel Marketing