The value ranges produced by the three variations of the Direct Comparison Approach produce the following results, prior to deductions for FF&E and BEV:

RevPAR:            $10,451,200 to $10,668,000 or $130,640 to $133,350 per room
GOI:                    $  9,600,000 to $13,200,000 or $120,000 to $141,000 per room
NOI:                    $  7,942,400 to $  8,616,000 or $   99,280 to $107,000 per room

RevPAR measures the difference in performance based on room revenue only and is analogous to a GIM. The danger of this approach is though it may measure gross incomes that are similar it does not account for net incomes which maybe dissimilar.

GOI measures the difference in performance based on total gross income from all sources and is also analogous to a GIM and can suffer from the same frailties as RevPAR.

NOI measures the difference in performance based on the total net operating income from all sources and is generally the most accurate indicator of value as it takes into account differences in all forms of income and expense. It effectively adjusts for all the differences between the subject hotel and the comparables, where RevPAR and GOI maybe similar but NOI ratios are dissimilar. This is clearly demonstrated in this case study where NOI to GOI ratio ranges from 19.0% for the subject to 22.0% to 27.0% for the comparables.

This is likely caused by the subject property operating its own food and beverage resulting in increased overall expenses, while in sales #1 and #2 the food and beverage is leased to a third party operator and sale #3 is essentially all rooms requiring less expenses.