Hospitality real estate covers hotels, motels, inns, lodges, and resorts. Unlike most commercial property, a hotel is both a real estate asset and an operating business, so its value depends on revenue, operations, brand, and the physical condition of the building. Buyers and sellers need to evaluate both the property and the business. How are hotels and motels valued? Hotels are usually valued using net operating income and a capitalization rate, along with price per room as