Remove Net Operating Income Remove Operations Remove Real Estate
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

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

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

Ashford Hospitality Trust Closes on Hotel Sale, Gives Asset Update

Lodging

percent capitalization rate on trailing 12-month net operating income through March 2024. All the net proceeds from the sale will be used for general corporate purposes including paying down the company’s strategic financing. DALLAS, Texas—Ashford Hospitality Trust, Inc. million ($95,300 per key).

article thumbnail

Improve Hotel Bottom Line with Hotel Profitability Analysis

eZee Absolute

Hotel profitability analysis is a multifaceted approach that considers revenue generation, cost management, and operational efficiency. These metrics help in distributing the income, expenses as well as profit your property is making for all its inventory. GOPPAR GOPPAR stands for Gross Operating Profit per Available Room.