appraised value

What about Financing Metrics?Cap Rates, GRM, DCR, RevPar, ADR, COC, oh my!

So many financial terms….do you understand what you’re looking at? Your first step, other than working with me as your investment specialist, is to understand the metrics. GRM: GROSS REVENUE MULTIPLIER DCR: DEBT COVERAGE RATIO 8 CAP: 8% CAP RATE COC: CASH ON CASH ADR: AVERAGE DAILY RATE RevPAR: REVENUE PER AVAILABLE ROOM OCCUPANCY (ANNUALIZED […]

What about Financing Metrics?Cap Rates, GRM, DCR, RevPar, ADR, COC, oh my! Read More »

A follow-up post to my previous post on valuation…

Back to the issue of the portion of an appraisal of a bed and breakfast that gets allocated to goodwill…. My post was written with a less than favorable situation for a property that had a considerable amount allocated to goodwill. But that’s not always the case. B&B appraisals will often include two or three

A follow-up post to my previous post on valuation… Read More »

Going Concern Value – Inn Valuation

An inn or bed and breakfast is a hybrid. Yes, it is a business that operates within a piece of real estate on a piece of land. But it is a commercial business with a residential component. So how does an appraiser go about valuing this hybrid business? It’s not always easy for the buyer

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