Accor is considering to buy an economy hotel in Dallas. The prevailing market discount rate for the economy hotel subsegment in Dallas is 10%. The expected NOI for the next 6 years is shown on the right. The WACC for this project is 8%. Accor is considering a 5-year holding period for this investment. The going-in cap rate is 7% for this hotel subsegment however Accor expects the going-out cap rate for this investment to be higher than the going-in rate by 25 basis points. Year 0- Year 1 - $100,000 Year 2- $118,000 year 3- $123,000 Year 4- $126,000 Year 5- $130,000 Year 6 - $142,000

Assuming 2% transaction costs at time of sale only, what is the current market value of the hotel if Accor plans to sell it at the end of the 5th year? Do not round off the valuation.