Trending Content - Real Estate Forum
Career Resources
WSO Free Modeling Series - Now Open Through
July 31, 2026
9 Free Financial Modeling Lessons
Get instant access to lessons taught by experienced private equity pros and bulge bracket investment bankers including financial statement modeling, DCF, M&A, LBO, Comps and Excel Modeling.
+Bonus: Get 27 financial modeling templates in swipe file
+Bonus: Get 27 financial modeling templates in swipe file
High Finance Applications
Guaranteed
Get at least one offer GUARANTEED
- 1:1 support
- 92% success rate
- 2,000+ mentor network
- Unlimited Live bootcamps
- AI for resume + LinkedIn
- Networking automation tools
- HireVue simulation tool
- Full course library
- Private Slack community
- 20hrs of mocks
- + much more...
For Hotels we use NCF as opposed to NOI and the NCF uses 4% FFE. FFE might as well be above the line because hotels are such a operationally intensive product type and there is a constant need to maintain the hotel to a flag's standards. And side note- if your going to use a CMBS loan, Fitch will stress that to 5% FFE.
Thanks!
What are your thoughts on selling it on an EDITDA multiple?
Brody has the best answer here; however, I would also stress the importance of price per key, especially on an all-in basis (most brands will require a PIP/reno on change of ownership which can be anywhere from $5k/key to $100k/key). Price per key is important because if you can take a 150 room and add 15 rooms by getting rid of a ballroom or other space that is not being used, you effectively improve your top line by 10% and hopefully aren't taking on additional fixed expenses (and honestly few additional "variable"). This also assumes you're in a market where you'll maintain your occupancy/rate levels with the additional rooms (which should be easy if you renovate correctly, have the right revenue management team in place, and are offering a newly renovated product).
Some ballpark numbers, a lot of multifamily class A's will redo TI's/reno's anywhere between 10-20 years. Standard reno time for hotels is 7 years for higher end hotels.
7 years? For a reno? What properties are you talking about?
7 year cycle for a reno. Not 7 years to renovate
Facere ex ipsum fugiat tempora consequatur enim nihil. Repudiandae ex harum earum cumque. Quisquam quisquam aut ullam culpa vitae accusantium ex magni. Quas voluptatem aut consectetur reprehenderit dignissimos. Officia corrupti corporis error quaerat.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...