A hotel is underwritten on its market, not its building. This report establishes what the competitive set achieves today, where the demand comes from and how durable it is, what is being added to supply, and the rate and occupancy a new or repositioned property can realistically hold.
Supply is built property by property: room count, opening year, last renovation, class, flag and amenity level for every hotel in the competitive set, plus the independents that compete on price. The pipeline is assembled from building permits, franchise announcements and local planning records, and each project is assessed for whether it will actually be delivered — announced hotels that never break ground are a routine source of overstated supply forecasts.
Demand is segmented by source rather than counted in aggregate. Corporate demand is traced to named employers and their travel patterns; group demand to meeting space, sports and event calendars; leisure demand to attractions, corridor traffic and seasonal peaks; contract and project demand to construction, energy or infrastructure activity with a stated end date. Employment by industry, regional output and visitation patterns establish the base, and the report states which segments are structural and which are temporary.
Rate is reported as a ladder across the competitive set rather than as a single market average, because a new upper-midscale property is priced against its own tier. Occupancy is shown by month where the data supports it, so seasonality is visible rather than averaged away. Absorption is assessed by looking at what happened when comparable rooms were last added to this market: how long the ramp took, whether rate held, and which properties lost share.
The competitive set is defined by who actually competes for the same booking — class, location relative to demand generators, and amenity level — not by drive distance alone. Where transaction evidence exists, recent hotel sales in the market are summarised with the basis on which they were reported, and any property-improvement-plan obligations known to be attached.
Capacity is tested by comparing rooms per unit of demand against the market's own history and against comparable markets, rather than a national rule of thumb. The risk section covers concentration in one employer or one event, seasonality deep enough to threaten coverage in shoulder months, pipeline that would reset the rate ladder, renovation obligations across the set, and the labour availability that determines whether a property can run at full occupancy.
Lenders and credit committees testing a sponsor's projections; developers deciding class and flag; owners planning a repositioning or PIP; and investors underwriting an acquisition. Where the project will be financed through SBA or USDA, the report is usually the first stage of a full feasibility study.
A market intelligence report describes the market. It tells you what the competitive set achieves and what the pipeline will do to it. A feasibility study goes further: it takes one project, applies the market findings to its capital cost and operating model, and reaches a conclusion on whether it works — which is what SBA and USDA programmes require. An appraisal develops an opinion of value for a specific property under professional valuation standards. Many files need more than one, and the market work is common to all three.
See Market Intelligence for the research method, or market research consulting where the question does not fit a package.
Reports are commissioned for a named market and this asset type. Geography runs from a single county to several states, the fee is fixed and agreed with the reports desk once the market and scope are confirmed, and delivery is 3 to 5 business days for standard geographies. Where the project also falls inside one of the seven purchasable property-type families — office, retail, multifamily, warehouse and industrial, mixed-use, hospital and ASC, and gas station and truck stop — the published packages from $1,950 apply and can be priced in the builder on market reports.
Last reviewed September 2026. Every figure in a delivered report carries its source and date; where a figure could not be verified, the report says so.
Independent, commissioned research for your market. Fixed fee, delivered in 3 to 5 business days.
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Wert-Berater, Inc. is an independent provider of feasibility studies and other related services. The firm does not provide financing or equity investment advice, and does not arrange, broker, or place debt or equity capital of any kind.
All appraisal assignments are performed by Bruce E. Jones, MAI, ASA-GC, BCA, CMEA, a member of the Appraisal Institute since 2006, a staff member of Wert-Berater, Inc. and owner of Special Purpose Realty Valuation.