Thompson Okanagan Hotel, Motel & Inn Appraiser
Frontier Hospitality Advisor is an Okanagan based hotel, motel & inn appraisal service. I specialize in appraising Thompson Okanagan Hotels, Motels & Inns for refinancing or purchase financing, foreclosure or power of sale, divorce or settlement, purchase or sale considerations, legal purposes, estate & retirement planning.
Specializing in the hospitality industry allows me to stay up to date on all of the latest trends, transactions, inventory and key performance indicators. Below are some of the latest statistics for the Thompson Okanagan hotel, motel & inn industry that will help you develop an estimate of value for your lodging property:
Sample Thompson Okanagan Hotel, Motel & Inn Sale Capitalization Rates:
The following list reflects capitalization rates for Thompson Okanagan hotels, motels & inns that have been derived from recent sales in my extensive transaction database.
Capitalization Rate = Net Income / Sale Price
- Howard Johnson Inn, Vernon – 6.9% cap
- Sandy Beach Motel, Osoyoos – 7.4% cap
- Hotel Eldorado, Kelowna – 7.5% cap
- Holiday Inn Express, Kamloops – 7.6% cap
- Comfort Inn & Suites, Salmon Arm – 8.5% cap
- Super 8, Vernon – 9.1% cap
- Econo Lodge Inn & Suites, Kamloops – 9.3% cap
- Howard Johnson Inn, Vernon – 9.4% cap
- Knights Inn, Merritt – 9.7% cap
These historical capitalization rates range from 6.9% to 9.7%
My appraisal will estimate your property’s net income before debt service and depreciation utilizing a forecast of income and expenses. The result will be utilized to estimate its market value via a direct capitalization technique.
Estimate of Market Value = Net Income / Capitalization Rate
Because lodging facilities are income-producing properties that are normally bought and sold on the basis of capitalization of their anticipated stabilized earning power, often the greatest weight is given to the value indicated by the income capitalization approach.
Sample Thompson Okanagan Hotel, Motel & Inn Sale Prices Per Room:
Another way that hotels, motels & inns are commonly valued is the sales comparison approach which uses actual sales of similar properties to provide an indication of the subject property’s value.
The following sample of lodging property sales in the Thompson Okanagan region will help you develop a broad value range for your hotel, motel or inn:
- Super 8, West Kelowna – $37,000 per room
- The Plaza Hotel, Kamloops – $37,300 per room
- Howard Johnson Inn, Vernon – $44,100 per room
- Jubilee Motel, Penticton – $46,200 per room
- Sportman’s Motel, Merritt – $46,400 per room
- Travelodge, Merritt – $50,000 per room
- The Westridge Inn Resort, Osoyoos – $57,600 per room
- Howard Johnson Inn, Vernon – $59,500 per room
- Super 8, Vernon – $63,145 per room
- Knights Inn, Kamloops – $65,000 per room
- Village Green Hotel, Vernon – $68,400 per room
- Econo Lodge Inn & Suites, Kamloops – $71,000 per room
- Green Gables Beach Resort, Osoyoos – $73,300 per room
- Super 8, Penticton – $76,500 per room
- Apple Tree Inn, Penticton – $76,700 per room
- Knights Inn, Merritt – $77,500 per room
- Lakeside Villa Inn & Suites, Penticton – $83,200 per room
- Abbott Villa on the Lake, Kelowna – $84,600 per room
- Super 8, Lake Country – $86,300 per room
- Best Western Inn, Penticton – $87,500 per room
- Comfort Inn & Suites, Salmon Arm – $87,700 per room
- Days Inn, Kamloops – $88,400 per room
- Econo Lodge, Kelowna – $90,900 per room
- Holiday Inn Express, Kamloops – $111,300 per room
- Podollan Inn, Salmon Arm – $111,300 per room
- Comfort Inn & Suites, Kamloops – $112,600 per room
- Waterfront Inn, Penticton – $120,000 per room
- Thompson Hotel & Conference Centre, Kamloops – $130,600 per room
- Coast Osoyoos Beach Hotel, Osoyoos – $142,600 per room
- Waterfront Inn, Penticton – $165,400 per room
- Sandy Beach Motel, Osoyoos – $303,700 per room
The sales outlined above indicate a value range of $37,000 to $303,700 per available room. Several adjustments will be necessary to render these sales prices applicable to your property. The adjustments, which tend to be subjective, diminish the reliability of the sales comparison approach; furthermore, typical hotel investors employ a sales comparison procedure only to establish broad value parameters.
Thompson Okanagan Hotel, Motel & Inn Industry Overview:
BC residents make up the largest share of overnight visitation (61%) and spending (44%) in the Thompson Okanagan region. Alberta residents make up the second largest share of overnight visitation (19%) and spending (28%).
As of 2019, there are approximately 400 active hotel, motel & inn properties in the region. Half of BC residents and more than a third of other Canadians visiting the Thompson Okanagan region stayed with friends and family. The most popular accommodation for international visitors was staying with friends and family, followed by hotels.
- Kelowna and Kamloops are the most visited destinations in the Thompson Okanagan and also contribute over 50% of room revenue receipts.
- Penticton is a popular beachside community. The two other communities in the region which have experienced the strongest revenue growth are Oliver/Okanagan Falls and Osoyoos.
- Motels earn a higher proportion of room revenue in the Thompson Okanagan than in other B.C. tourism regions. There are few very large hotels (+250 rooms) in this region.
Thompson Okanagan Hotel, Motel & Industry Research Reports:
Since the formulation of the previous Penticton Destination Marketing Strategy in 2010, Tourism Penticton and the Penticton Hospitality Association (PHA) have worked independently to promote our region and during that time tourism has experienced a steady growth. The estimated economic impact of tourism in Penticton rose from $84.7 million in 2011 to $107.3 million in 2015.
Tourism is a major economic generator for the City of Kelowna and its surrounding municipalities and region. Tourism contributes directly to employment and economic growth in the region through the ongoing operations and activities of different firms that serve tourists. The tourism industry is a significant economic generator that makes contributions to the local economy, the Province of British Columbia and beyond.
This report summarizes key highlights for the Thompson Okanagan (TOTA) region taken from the British Columbia In-Market study conducted in November 2011 and April 2012. A full report on the findings, plus summaries of the other BC tourism regions are available under separate covers.
The Thompson Okanagan Tourism Association is actively monitoring the impact of COVID-19 on the tourism industry through our partnerships with the BC Regional Tourism Secretariat and the British Columbia Hotel Association
The Destination Osoyoos Business Plan has been developed through a combination of review of the previous five-year business plan which was developed in 2017 for our 2018 MRDT renewal, identification of industry trends, delivery of destination development workshops, and industry stakeholder consultation and engagement sessions. These activities took place between the fall of 2016 and the end of 2019. In addition, we have updated this document to reflect 2019 financial performance.
Thompson Okanagan Tourism & Hotel Associations:
This article has been prepared by Frontier Hospitality Advisor for general information only. Frontier Hospitality Advisor makes no guarantees, representations or warranties of any kind, expressed or implied, regarding the information including, but not limited to, warranties of content, accuracy and reliability. Any interested party should undertake their own inquiries as to the accuracy of the information. Frontier Hospitality Advisor excludes unequivocally all inferred or implied terms, conditions and warranties arising out of this article and excludes all liability for loss and damages arising there from.