How to evaluate hotel real estate with income method

I. Traditional methods of hotel real estate appraisal (I) Cost method This method is one of the main methods used in hotel real estate appraisal at present, with general operating conditions and relatively simple operation. What should be paid attention to in the specific operation is the calculation of depreciation amount. The depreciation period of short-lived items (such as decoration) in hotel assets is different from that of buildings, so it needs to be calculated separately and cumulatively. In addition, the building structure, design style and grade of the hotel make the development cost and decoration cost of the hotel very different from ordinary civil buildings. In the process of evaluation, the hotel owner should be required to provide the final statement and relevant engineering contracts for reference. The main disadvantage of this method is that it can't objectively reflect the value of hotel income for hotels with good income. (2) Market comparison method First of all, the market comparison method assumes that hotel buyers are only willing to pay a price that does not exceed the recent transaction amount of similar hotels. Theoretically, this method can objectively reflect the real value of hotels, but as a special property type, the hotel real estate transaction market is not mature enough at present, and there are few domestic hotel transaction cases. Secondly, even if there are individual hotel transaction cases, it is difficult for the evaluation agencies to obtain reliable transaction information and transaction conditions because of the great differences in the physical conditions of hotel properties. Moreover, the scale, quality, market positioning and facilities, goodwill and management of different hotels are often very different, which is difficult to correct. Therefore, at present, the market method is rarely used to calculate the hotel value.