Handed a 62-key hotel to price, and every comp I pulled is useless

I'm at zero on this too so I can't help, but can I ask a dumb one alongside yours? When they say "per key" is that literally just price divided by number of rooms? Because that seems like square footage with extra steps and I don't see how it handles a hotel that's full versus one that's empty.

@ember, yes, price divided by room count. It's a rough benchmark, useful for spotting when something is far outside the range for its brand and market. It doesn't handle occupancy at all, which is why it's the check and not the answer.

Halyard, income leads. A hotel is a business with real estate under it, and buyers price the income. On the seasonality, don't smooth it away. A four to one swing across the year means the buyer needs working capital to get through the winter, and the lender will size debt off the annual number while the property can't cover its payment in February. That's a real cost and it belongs in your writeup rather than buried in an average.

Two things I'd chase before I put a number on paper. What's the remaining term on the franchise agreement, and is there a property improvement plan due? A hotel with two years of brand term left and a renovation coming is worth meaningfully less than the same building with twelve years and a fresh renovation, and neither of those shows up in your trailing income.

Also ask whether the trailing $410k has a reserve for furniture and equipment taken out. If it doesn't, your income is overstated by roughly four percent of revenue and your $4.9M is too high.