This article provides an overview of capitalization rates and rooms revenue multipliers, as well as a summary of recent trends for these metrics and their role in the valuation of limited-service hotels. U.S. Hotel Appraisals and HVS continually track capitalization rates and rooms revenue multipliers for limited-service assets on which we consult.
Multipliers and capitalization rates are inversely related—a lower capitalization rate results in a higher value, while a lower multiplier results in a lower value.
In the case of hotels that were…
