Market Rent & Lease Valuations for Hospitality Assets

Determining the fair market rent or lease value is a critical factor for hotel properties. Since hospitality assets are typically leased over long durations, the accuracy of a lease valuation directly impacts the long-term ROI of the investment and the operational stability of the tenant.

A professional lease valuation report, prepared by an IHK-certified hotel expert, provides an objective foundation for decision-making—whether as a plausibility check for financing banks or as a resilient basis for contract negotiations between property owners and hotel operators.
 
The Challenge: Lack of Transparency in the Hotel Market
 
Unlike residential or standard office spaces, there are no public rent indexes or freely accessible benchmarks for hotel properties. Actual lease terms, turnover rents, and stepped rent agreements are kept confidential and are not published on the open market. Evaluators outside the industry often lack access to real-world transaction data. Determining a sustainable lease level requires:
 
  • Deep Market Intelligence: Insights into recent contract signings and market-standard rent-to-revenue ratios.
  • Location Expertise: To guarantee true market proximity, our experts focus on lease valuations within a defined radius of our regional offices. This ensures that local micro-location factors are accurately reflected in the appraisal.
  • Industry-Specific Calculations: Considering lease caps, maintenance obligations (FF&E vs. building structure), and the economic performance potential of the specific hotel concept.
Security for Owners, Operators, and Lenders
 
A sustainable lease value protects both parties: it prevents the owner from undervaluing the asset and protects the tenant from excessive financial burdens that could jeopardize operations. Particularly for loan applications, banks require a well-founded derivation of projected income by a specialized hotel appraiser to minimize default risks.
 
Request a Professional Lease Valuation Report
 
Benefit from our expertise in delivering market rent analyses and lease valuations for the hospitality sector. We provide the data necessary for legally sound contracts and stable financing structures.
 
For inquiries or direct mandates, please contact our office at +49 176 4884 62 90 or reach out via our Contact Form.