Hotels (limited and select service) Valuation Calculator
Cited Band
8x to 12x EBITDA (flagged limited-service)
Source: Hotel EBITDA multiples by tier (Bay Street Hospitality)
Implied Range
$4,000,000 to $6,000,000
A band, not a price. Answer the drivers below to place this business inside it.
Testing a real deal at a price in this range? Underwrite it end to end with the midpoint carried over. This trade prices on EBITDA, and the underwriter works in SDE, so enter that figure there: the two differ by the owner's own pay.
Where This One Sits
How much revenue recurs?
How concentrated are the customers?
What happens when the owner leaves for a month?
How clean are the books?
Do the licenses, leases and contracts transfer?
Nothing answered yet, so there is no reading. This does not default to the middle: a midpoint shown for a blank form would say your business is average when you have not told it anything.
The drivers that move the number in this trade specifically are in the full Hotels (limited and select service) guide. The picker holds every trade whose cited band is a multiple of one earnings figure; the 15 priced on cap rates, collections, revenue or two bases at once are named with their reasons rather than left out silently. Every cited band, with its drivers and source, is listed below on this page.
What Moves the Multiple
Select-service runs a tier higher and the market clears 6-12x run-rate; per-key $30k-50k and 7-10% caps run alongside, and the flag's fees plus the transfer PIP price the brand's half.
Band cited from Hotel EBITDA multiples by tier (Bay Street Hospitality).
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