income capitalization approach will be emphasized in this chapter. In jurisdictions where ad valorem taxes are based on market value of real estate, hotel owners are concerned with separately estimating the real property component (real estate) and the personal property component (both tangible and intangible personal

In the income capitalization approach, property value is treated as a function of a. original construction cost. b. net operating income. c. depreciation. d. sales prices of comparable properties.