Hotel Portfolio Values

Properties sold together as a portfolio may represent a greater, equal, or lesser value than the sum of each property's individual values, depending on market conditions and characteristics of active buyers. The author collected hotel sales data for the 2012-2014 period and compared the sale prices of portfolio hotel transactions with individual hotel transactions of similar quality, as measured by RevPAR. During this period, the author concludes that portfolio transactions exhibit a premium sale price when compared to individual hotel transactions.

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