There is no defensible single US boutique-hotel cap rate. Select a rate from relevant transaction and valuation evidence, then disclose differences in income definition, market, condition, affiliation and capital requirements.
For context—not direct application—the HVS US Hotel Valuation Index reported an overall average transaction cap rate of 7.7% for Q2 2026 and 8.2% for the trailing twelve months ending June 2026. Those are different observation periods across a broader hotel sample; HVS expressly cautions that its index cannot establish a particular hotel’s value. (hvi.hvs.com)
For each proposed comparable, our recommended worksheet asks:
| Question | Required clarification |
|---|---|
| What income was capitalized? | Historical, forward or stabilized; before or after replacement allowance |
| What actually transferred? | Real estate, operating assets, leasehold interests and other components |
| What investment followed closing? | Renovation, brand requirements and deferred maintenance |
| What contractual burden remained? | Management, franchise, ground lease and termination obligations |
| How comparable was the demand? | Seasonality, customer mix, location and service level |
Price per key is a cross-check, not an earnings substitute. In a hypothetical 60-room purchase at $12 million, the headline price is $200,000 per key. That arithmetic says nothing about the additional capital required or the income available to support the purchase.