Hotel Revenue Glossary · Financial

Asset Value Per Key

The total market value of a hotel property divided by the number of guest rooms. This metric normalizes property values for comparison across hotels of different sizes. A 300-room hotel valued at $75 million has an asset value of $250,000 per key.

Why it matters: Asset value per key is the real estate metric most commonly used in hotel investment. Revenue managers who understand this concept appreciate how their daily decisions compound into property-level value creation — or destruction.

All glossary terms Capitalization Rate (Cap Rate) NOI (Net Operating Income) IRR (Internal Rate of Return)