How Much Should I Pay for the Land?

This article discusses three alternate approaches to determining the value of land at a hotel site, in the absence of comparable land sales. The Allocation Method, Ground Lease Approach, and Land Residual Approach are discussed.
Suzanne R. Mellen, MAI, CRE, FRICS, ISHC is the Senior Managing Director and Practice Leader of HVS Consulting and Valuation. She has been evaluating hotels and other hospitality real estate assets for 40 years, has authored numerous articles, and is a frequent lecturer and expert witness on the valuation of hotels and related issues. Ms. Mellen has a BS degree in Hotel Administration from Cornell University and holds the following designations: MAI (Appraisal Institute), CRE (Counselor of Real Estate), ISHC (International Society of Hospitality Consultants) and FRICS (Fellow of the Royal Institution of Chartered Surveyors). Contact Suzanne at +1 (415) 268-0351 or [email protected].


  1. Peter GaborJanuary 8, 2013

    general info for clients required for hotel projects

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