Cost of profitable real estate depends on the ability of land and buildings to bring the rent. However, it is difficult to apply to hotels that definition, because he thinks the hotel only object of real estate is not quite true. Typically, hotels charge a fee based on the number of nights, and their ability to generate revenue due to such properties are independent of factors such as the level and quality of service, availability and convenience of services and additional levels created by the atmosphere. Therefore, the evaluation of hotels - a complicated process, for which invited experts with knowledge of various pricing factors affecting the cost of the hotel. Thus, despite the fact that hotels are usually considered real property, the assessment they are still regarded as a property, and as a business.

Typically, when evaluating the hotel used three traditional approaches (costly, comparative and profitable) as the evaluation of other earning assets, whether real estate or business. In order to accommodate all the elements that make up the cost of a functioning hotel, at the cost method of valuation should take into account all the intangible assets associated with brand name hotels and its functioning as a single business and its stability. When income method considered the costs of replacing wear items and sophisticated equipment. A method of comparing the sales should include adjustments for potential differences in the physical condition and financial status of hotels, declared in the sale.

Since the cost of the hotel by a certain date of evaluation depends on its ability to generate net income in the future, when assessing the value of the most commonly used income approach. To predict future income hotel appraisers analyze the hotel market. Present value of projected income and determine the market's willingness to offer for a hotel or that amount.

Forecast net income of the hotel is directly dependent on market conditions, which are characterized by the volume of demand for hotel rooms and services, as well as a competitive offer on the market. For the analysis of demand is anticipated that the hotel clientele uniform and can be divided into different categories: business tourism, visitors to meetings and conferences, airline workers, tourists (individual and group tours). Then the projected volume of demand for each sector in bududem, and is forecast unmet and stimulated demand, which may arise in the market. Competitive offer hotel rooms is estimated as the sum of the number of day-rooms per year, including the current proposal on the market, offers in projects under implementation, as well as hotel projects, expected in the future.

For each year analyzed period possible price and occupancy numbers are based on projections of demand and supply. This requires an assessment of the competitiveness of the hotel and a combination of the level of occupancy and average room rate, which can be achieved at the expected market conditions. The main source of income for hotels - the annual income from the rental of rooms - is calculated as the number of occupied rooms multiplied by the price achievable rates (see table attached). Revenue from other services provided by hotels, usually comes at a time, depending on the possible occupancy hotels.

For net income estimator uses a special set of accounts, which are all sources of income, as related to hotel business. If the hotel provides a full range of services here, except for income from renting rooms, includes: income from restaurants, bars, cafes, revenue from telephone services, laundry services, conferencing services, income from the business center, fitness center and from the rental of commercial premises. The table below shows the typical breakdown of the accounts in the four-and five-star hotels, as well as the typical percentages for major activities in a typical year (a summary of the leading hotels for 2005).

To determine the present value of expected annual net income, using a discount rate (rate of return), which reflects, as a potential risk associated with operation of the hotel, as well as investor interest in buying the building and equipment, the hotel now. While the hotel certainly belong to the estate, they are managed as a business, which makes their evaluation more difficult and not unambiguous, as is the case with conventional types of commercial real estate, where the value is determined depending on the level of potential rents.