• Asking price to be up to three times of net room revenues if the property is limited service
• Asking price to exceed three times of net room revenues if the hotel is full service and bar and restaurant are profitably owner operated or leased out
• Asking price to exceed three times of net room revenues if the property is interior
• Corridors and fairly new construction
• Any price that supports CAP rate between 12 - 14% after management
  fees and replacement reserves

Besides above, following types of properties are more appreciated:

• Interior Corridors
• Any new development in the area providing upside to revenues
• Visibility from Highway with good access
• Bigger room size - from 300 Sq Ft and upward
• Hotels/Motels operating as independent and good for franchise conversions

(Above will apply for independent and franchise properties and determination of price may differ depending upon the condition of the property, upside potential, financial performance in the past, changes in demand generators etc.)

For franchised properties the amount of work required by the Franchisor from existing franchisee or new buyer, which is typically know as Punch list, would also have a bearing on the asking price.

NOTE: This is just the opinion expressed by the writer based on his professional judgment and the owner is advised to take the services of an appraiser for more accurate valuation of the property