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The borrowing cost of debt financing continues to remain stable while equity financing has become relatively cheaper. We expect prices for hotel properties to fall slightly in the next quarter. This is not necessarily bad news since it will give operating performance as measured by EVA a chance to continue to increase vis-à-vis an increase in the cap rate, assuming that total borrowing cost remains stable or it becomes cheaper to borrow debt or equity money. This is report number 12 of the index series.


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Supplemental File:
Hotel Valuation Model (HOTVAL)
We provide this user friendly hotel valuation model in an excel spreadsheet entitled HOTVAL Toolkit as a complement to this report which is available for download from

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