An investor considers purchasing a 300 room full-service hotel that generates a net operating income (NOI) of
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An investor considers purchasing a 300 room full-service hotel that generates a net operating income (NOI) of $450,000 per year. The investor is willing to purchase the hotel at a cap rate of 8%. At what price per room should the investor offer to buy the hotel?
a. $18,750
b. $12,000
c. $16,750
d. $15,000
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Related Book For
Managerial Accounting for the Hospitality Industry
ISBN: 978-1119386223
2nd edition
Authors: Lea R. Dopson, David K. Hayes
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