Buyers price trailing NOI, so when it's soft the asset sits — and no price cut fixes a number that was never earned. The cause is almost always mechanical: the property is under-distributed and under-priced. We fix that, the trailing NOI resets, and the listing you couldn't move sells at a real number.
We look at your market first, then we evaluate your potential. If the numbers aren't there, we'll tell you.
The rooms a property isn't selling are mostly empty rooms whose cost base is already covered. Recover them and reprice them, and after the cost of selling that business, the new revenue falls to NOI almost dollar-for-dollar. A buyer then capitalizes that NOI — so the value created is not the size of the revenue lift, it is a multiple of it.
Illustrative mechanism: recover ~$435K of rooms revenue on inventory that was sitting empty → ~$260K drops to NOI after the cost of sale → at an 8% cap rate, ~$3.3M in asset value. Your own figures come from your verified trailing twelve months and nothing else.
The whole case is in the cap rate. Every dollar of NOI you add is capitalized into the sale price — which is why repairing the operation is worth a multiple of the revenue it takes to repair it.
| Market cap rate | Value per $100K of recovered NOI |
|---|---|
| 6.0% | $1.67M |
| 7.0% | $1.43M |
| 8.0% | $1.25M |
| 9.0% | $1.11M |
| 10.0% | $1.00M |
Illustrative. Value created = recovered NOI ÷ cap rate. Shown to demonstrate the mechanism, not as a quote or an appraisal.
Put in a hotel's keys, rate and occupancy, then move the two sliders — a better rate and a fuller calendar — to see the added revenue, the profit it drops to, and what that is worth at your cap rate.
We're repairmen, not a management company. We fix it, put the systems in place, train your people and let them get back to work.
We are not your broker and we will not act as one. We do not market the property, we do not introduce buyers, and we take no part in negotiating a sale. If you are represented, your broker's position is entirely unaffected by us.
We decline most of what we look at. There is one hard test: the market has to carry a real rate — comparable rooms, in the same town, actually clearing a materially higher price on the same nights. Our edges are pricing and distribution; neither creates demand where a market has none. If the ceiling is not there, we will tell you, and we will not propose anything.
Beyond that: a rate gap, a distribution gap, something worth selling, and one person who can decide. Roughly ten to eighty keys, independent, in leisure, resort, historic and character markets, anywhere in the country. See how we work →
Figures illustrate the mechanism only and are not a quote. Nothing here is legal, tax, investment or appraisal advice.
Owners and brokers both: tell us the property. We'll look at the market first and come back with what we see.
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