New method revolutionizes hotel real estate appraisal for increased profitability.
The income approach is a method used in real estate appraisal to estimate the potential benefits of a property. This study focuses on applying the income approach to hotel-based real estate. By analyzing financial data and policies, the researchers identified key factors like net income, costs, and return rates that are crucial but challenging to determine in real estate. The study used real case examples to demonstrate how the income approach can be used effectively in evaluating hotel properties.