Sheraton Hotel Redding At Sundial Bridge - Redding Record ...

Conclusion
the subject’s leasehold position. Sale #4, which occurred prior to 2010, was
adjusted upward by 15.0% and sale #3, which occurred in early 2010, was
adjusted upward by 5%. Further adjustments have been applied based on the
characteristics of each property, as compared to the subject property. Sales #1 and
#2 were adjusted downward by 10% and 15%, respectively, to account for the
subject’s inferior location. The adjustments for property characteristics include a
RevPAR adjustment. Hotels are purchased and sold based on their ability to
generate revenue and net income. RevPAR inherently reflects each comparable
sale’s relative revenue-producing ability, the primary consideration of hotel
purchasers. The best way to adjust comparable hotel sales is to calculate the
difference between a comparable hotel’s RevPAR at the time of sale and the
subject property’s RevPAR. We have adjusted the per-room sales price for each
sale by the percentage differential between the subject property’s stabilized
RevPAR and that of each property at the time of its sale.
Prior to adjustments, the comparable sales transacted for amounts ranging from
$72,000 to $332,000 per room. Following quantitative and qualitative
adjustments, the comparables ranged from $109,000 to $141,000 per room. we
have concluded a value of $135,000 per room, or $17,600,000, for the 130-room
subject property.
February-2011 Sales Comparison Approach
Sheraton Hotel Redding At Sundial Bridge – Redding, California 105