Hospitality Financial Leadership – What Are CAP Rates and How to Use Them
Hotel Financial Coach Blog
NOVEMBER 3, 2024
A capitalization rate, or cap rate, is a measure of the income return on an asset, such as hotel or rental property, relative to its purchase price. It is calculated by dividing the net operating income (NOI) of the asset by its purchase price. That’s what this piece is all about.
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