What is building technology worth to a hotel?

The short answer

For existing hotels, PropertyAlpha's benchmark values guest-room energy management at about 200 kWh saved per key per year at $0.134 per kWh, or about $27 of NOI per key per year. At an 8.25% hotel cap rate, that is about $325 of asset value per key. Guest Wi-Fi is a cost to manage, so it is valued at $0. Other categories are described in the free report and quantified in a full Impact Model.

Updated October 2026 · PropertyAlpha benchmarks (engine 2026.11-v3) · Figures are modeled

~$27

Guest-room energy NOI per key per year, existing hotels (modeled)

~$325

Asset value per key at an 8.25% cap rate

Value of guest Wi-Fi, a cost to manage

Why hotels are valued differently

Hotels trade at higher cap rates than apartments. At 8.25%, $1 of recurring NOI supports about $12 of value, compared with about $18 for a Class A apartment building at 5.5%. The same savings are worth less per dollar, so the case for each technology has to be sharper.

Guest-room energy

Energy management lets unoccupied rooms hold a setback instead of conditioning empty space. The benchmark, about 200 kWh saved per key per year at $0.134 per kWh, applies to existing hotels. For new hotels, it is part of the design conversation and the full Impact Model.

Wi-Fi

Guests expect Wi-Fi to be included. It is a service to run well and a cost to manage, not a revenue line, so PropertyAlpha values it at $0 for hotels.

Resilience

Leak detection, life safety and access control protect against the losses that drive claims and downtime. Their value depends on the property's own history and insurance terms, so they are described in the free report and quantified in the full Impact Model.

What is it worth to your building?

The free Property Impact Report applies these benchmarks to your property, by class and unit count, and shows the method behind every number.

Run your Impact Analysis

Sources

PropertyAlpha benchmarks (engine 2026.11-v3)