Hotel valuation
What is your hotel really worth?
Independent hotel valuations for owners, buyers and lenders, built on property-level operating data and separating the real estate, FF&E and going-concern value.
Independent
Hotel valuation
- Typical turnaround
- [X–Y weeks]
- Fees from
- $0,000
- Service area
- [Region]
- Credentials
- [Ph.D. / ASA]
What we cover
Properties we value
- Limited-service
- Select-service
- Full-service
- Extended-stay
- Branded & franchised
- Independent & boutique
- Motels & roadside inns
- Don't see yours?Ask us. We probably value it.
What drives value
A hotel is real estate and an operating business. We value both.
RevPAR, ADR & occupancy
Trailing and projected performance, benchmarked against the competitive set.
Operating margins
Departmental and undistributed expenses, management fees and a normalized NOI.
Brand & franchise terms
Flag strength, remaining term, fees and any property improvement plan (PIP).
Physical condition & FF&E
Age of rooms and systems, deferred maintenance and reserve requirements.
Market & new supply
Demand generators, pipeline of new rooms and local economic trends.
Allocation of value
Real property, personal property (FF&E) and intangible business value, reported separately.
When hotel owners call us
Each purpose has its own standard of value and reporting requirements. We scope the report to fit it.
SBA & bank financing
Acquisitions, refinancing and change of ownership
Buying or selling
Set an asking price or test an offer
Partner buyouts
Fair value for buy-sell agreements
Estate & gift tax
Transfers to the next generation
Property tax appeals
Separating taxable real estate from business value
Disputes & litigation
Divorce, partnership and insurance matters
Our process
Five steps, one clear report.
- 01
Intake call
Purpose, property and deadline. Fixed-fee proposal within [2] business days.
- 02
Documents
3 years of P&Ls and tax returns, STR reports, franchise agreement and PIP, via secure upload.
- 03
Site visit
Inspection of rooms, common areas and systems, plus a management interview.
- 04
Analysis
Income, sales comparison and cost approaches, reconciled into a conclusion of value.
- 05
Report & review
A written report your lender or attorney can rely on, and a call to walk you through it.
Inputs & outputs
What goes in. What comes out.
Send what you have. We'll tell you upfront if anything's missing, and you'll get a report your lender, attorney or the IRS can rely on.
What we'll ask for
Your documents
- Three years of profit & loss statements and federal tax returns
- Year-to-date P&L and trailing-12-month operating statement
- STR (STAR) reports or competitive-set data
- Franchise / license agreement and any PIP letter
- Rent roll or room-type mix and current rate sheet
- Fixed asset / FF&E schedule and recent capital expenditures
- Management agreement (if third-party managed)
- Real estate tax bill and any existing appraisals
Missing something? That's normal.
Upload securelyanalysis
What your report includes
Valuation report
Hotel valuation
- 01Conclusion of value with a clear allocation between real property, FF&E and business enterprise value
- 02Normalized income statement with every adjustment explained
- 03RevPAR, ADR and occupancy benchmarking against the competitive set
- 04Comparable hotel sales and market multiples
- 05Assumptions, limiting conditions and qualifications of the analyst
Request a valuation
Tell us about the property.
Takes about 2 minutes. Nothing here is shared outside our firm.
What happens next
- We reply within 1 business dayWith a few questions about your situation
- You get a fixed-fee proposalScope, timeline and price within [2] business days
- You decideNo obligation and no pressure
FAQ
Common questions
Is this the same as a real estate appraisal?
No. An appraisal values the property; a business valuation values the going concern. Many lenders require both. [Confirm how you coordinate with state-certified appraisers.]
Will my lender accept your report?
[Describe your credentials and report standards, e.g., the professional standards your reports follow.]
What if my financials are messy?
That's common. We work from tax returns, bank statements and STR data, and tell you upfront what's missing.
How much does it cost?
Fees depend on the size of the property and the purpose. You'll receive a fixed quote before any work begins. [Fee range]
Do you visit the property?
Yes, for most engagements. A site visit lets us assess condition, deferred maintenance and the guest experience that drives your numbers.
Can you value a hotel that's underperforming or under a PIP?
Yes. We model the cost and timing of the PIP and the expected stabilization, so the value reflects where the property is actually headed.
Own a gas station or another business too?
We also value gas stations, convenience stores and small businesses, and can handle several properties in one engagement.