Application of income approach in the hotel-based real estate appraisal

The income approach is generally accepted as one of the three basic methods in real estate appraisal.The method has a strong theoretical basis,and is often used to generate benefit or the potential benefit of real estate appraisal.In the income approach,the net income,cost and return rate are the key points and also difficult to determine in the real estate.This paper analyzes the required parameters based on the financial data and related policy analysis of hotel-based real estate with actual case to discuss application of income approach in the hotel-based real estate.