Income Capitalization Approach (Méthode du revenu)

The Income Capitalization Approach is based on the notion that the value of a property is indicated by the present value of future benefits. Income producing properties such as hotels traditionally use the income approach when determining their value. Thus we, believe the most appropriate method of valuing a lodging operation is to estimate the maintainable income stream representative of the earning power for the property. Since hotels are generally bought and sold on the basis of future earnings potentials, the Income Approach is considered to provide the best indication of value.