Hotel / Motel Valuation Multiples (2026)
Hotel valuations are real-estate-driven and tied to RevPAR vs comp set. Recently renovated, well-flagged hotels in growing markets command 2.2× revenue and 9× EBITDA.
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Pick your industry and enter revenue + EBITDA / SDE. We'll triangulate three valuation methods and show what buyers typically pay for businesses like yours.
Premium drivers
- ↑Strong RevPAR vs comp set
- ↑Long-term franchise flag
- ↑Recent renovation / PIP completed
- ↑Diverse guest mix (corporate + leisure)
Discount drivers
- ↓Pending PIP / required CapEx
- ↓Distressed corridor / declining market
- ↓Aging mechanical systems
- ↓Limited online distribution
Who buys hotel / motel?
REIT, hotel franchise group, PE-backed hospitality platform, or strategic operator
Typical timeline + revenue band
- Days to close: 120–240
- Revenue band these multiples apply to: $1.00M–$10.00M
- NAICS: 721110 (Hospitality)
5 levers that lift your Hotel / Motel multiple by 30-50%
- 1Lock in recurring revenueConvert the top of your hotel / motel revenue stack into multi-year contracts, retainers, or auto-renewing subscriptions. Buyers pay 25-40% more for revenue they don't have to re-win every quarter.
- 2De-risk customer concentrationAim for no single customer above 15% of revenue. If you have a > 25% client, get them on a multi-year master services agreement before going to market.
- 3Document the business out of the ownerREIT, hotel franchise group, PE-backed hospitality platform, or strategic operator will discount aggressively for any function that lives in the owner's head — sales, key vendor relationships, pricing, hiring. Run the next 90 days like the owner is on a 6-week vacation.
- 4Clean up the financialsGet a Quality of Earnings-ready trailing 12 months: GAAP-aligned, owner add-backs documented, no commingled personal expenses. This alone moves the multiple 0.5-1.0× upward in this category.
- 5Match the deal to the right buyer poolPE-backed roll-ups, strategic acquirers, and ETA buyers compete on different terms. List with someone who has run a process for hotel / motel acquisitions — generic SMB brokers will leave 20%+ on the table.
FAQ — Hotel / Motel valuations
What's a typical hotel / motel valuation multiple?▾
Typical hotel / motel valuations land near 4× SDE, 7× EBITDA, or 1.5× revenue. Strong operators reach 5× SDE / 9× EBITDA / 2.2× revenue, while weaker operators stay closer to 3.2× SDE / 5.5× EBITDA / 1× revenue.
How long does it take to sell a hotel / motel?▾
Most hotel / motel deals close in 120–240 days from listing. Strong operators with clean financials and a documented buyer pool close on the lower end.
Who buys a hotel / motel business?▾
REIT, hotel franchise group, PE-backed hospitality platform, or strategic operator
What pushes a hotel / motel valuation to the high end?▾
Strong RevPAR vs comp set. Long-term franchise flag. Recent renovation / PIP completed. Diverse guest mix (corporate + leisure).
What forces a discount when selling a hotel / motel?▾
Pending PIP / required CapEx. Distressed corridor / declining market. Aging mechanical systems. Limited online distribution.