Hotel Underwriting Tips

Hans Detlefsen | September 18, 2018

By Hans Detlefsen As the owner of a hotel appraisal and advisory company, I get the opportunity to review hundreds of hotel appraisals, feasibility studies, investment pitch books, and offering memoranda each year. One of the things I've learned over the past two decades is that a few small changes in underwriting assumptions can greatly affect how hotel deals looks to investors. If these underwriting assumptions are not carefully considered, then they can represent big pitfalls for investors, appraisers, and others involved in the underwriting process. The following is a list of 12 issues and pitfalls I encounter frequently. This is no...