CALCULATOR — VALUATION, CAP RATE & DSCR
Ryokan & hotel calculator: revenue, GOP, cap rate and DSCR
Enter the number of rooms, the average daily rate in yen and the occupancy to estimate annual revenue, GOP and NOI. Add an asking price and loan terms to see the cap rate at that price, the yearly debt service and the DSCR, and a price range from the capitalisation rates you choose. It is a first screening tool, not an appraisal or a lender's decision.
Result
The numbers you type are calculated in this page only and are never sent or stored.
HOW IT WORKS
How the numbers are worked out
Revenue is rooms × ADR × occupancy × 365 plus other revenue; GOP subtracts labour, cost of sales and other operating costs; NOI also subtracts fixed costs. The cap rate is NOI divided by the asking price, and DSCR is NOI divided by the yearly loan payments. Lenders often look for a DSCR around 1.3x, but every lender and deal is different.
The price range divides NOI by the two capitalisation rates you enter. Location, building condition, the repairs needed and whether the inn licence and hot-spring permits can be carried over can move the real price a long way.
Default figures are examples only. Replace them with the property's recent accounts and monthly results, and confirm the building and permits through due diligence.
General information, not an appraisal, a loan decision, or tax or investment advice.
Reviewed by Masayuki Tsutsumi, Representative Director, Japan Realtor Co., Ltd. · Updated 2026-10-29 · Masayuki Tsutsumi
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