Hotel Appraisal, Resort Appraisal – Hospitality real estate valuations in Latin America and elsewhere are unique because the value considers real estate and the closely associated value of the hotel business. Valuations of hotels and resorts have the following uses: Reporting (IFRS or NIIF), bank loans, disposition, and for decision-making. LOGAN has completed hotel valuations in Mexico, Colombia, Peru, Costa Rica, and Panama. Brands of hotels-resorts that LOGAN has valued includes Holiday Inn Express, IBIS, Trypp, Decameron, Intercontinental among others.


By Facilities

– Full-Service
– Limited Service
– Resort
– Convention
– All-Suite
– Extended-Stay
– Boutique

By Price Segment

– Luxury
– Upper Upscale
– Midscale/Upper Midscale
– Economy
– Budget

By Market Orientation

– Commercial
– Leisure
– Convention
– Residential

Approaches, Relevance

Cost – the cost approach is relevant when properties are relatively new.

Sales comp or market approach – in Latin America this is difficult to apply with hotels, as there are few transactions that take place – and comps are often not comparable.

Income capitalization – relevant method of valuation because it takes into account the income of a property, but loses relevance when property is in stabilization or in an atypical market (pandemic as an example).

DCF – often the best method, as it summarizes income projections and cost projections to conclude a NOI. This is the preferred method of evaluating potential acquisitions of hotels for investors in Latin America.

Value Impacting Factors

– ADR – Average Daily Rate
– Occupancy
– Location quality
– Cap rate – Discount rate

Important Inputs

– Client supplied data, field data, in-house data
– ADR and occupancy rates of subject and market
– Hotel – resort operating contract

Recent Trends

Online booking – proprietary reservation platforms.

Hip, younger generation focused hotel format – Moxy as an example.

Covid restrictions and their impact on the hospitality industry – very negative, but for some countries such as Mexico, the rebound has been rapid.


A. Value impacting considerations
B. Purpose, scope, limitations of the report
C. Description of the site
D. Improvement description.
E. Scope of work.
G. Approaches to value.
H. Reconciliation.
I. Certification statement

Notable Markets


Santa Marta
San Andres


Cancun, Riviera Maya
Cabo San Lucas
Puerto Vallarta
Playa del Carmen


Lima, Miraflores
Lima, San Isidro
Lima, Santa Cruz


Bocas del Toro