• What two factors do we adjust to stress test the NOI? Define and illustrate NOI? What is the typical NOI% on limited service hotels, full service hotels, ALF and multi-use?

    Team Doctor Without Borders

    Two factors that we adjust to stress test is the interest rate and NOI as a percentage of revenue. Net income is revenue minus operating expense. The standard measure of the Lender is the EBIDA (Net Income + Interest + Depreciation + Amortization). The typical EBIDA for a limited service hotel is 35% , full service hotel at 25% to 30%, assisted living at 20% to 30% and multi-use is 20% to 40% depending on the industry.

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