Hotel Business — Business Valuation Multiple
EBITDA Valuation Guide · Small & Mid-Sized Businesses
Actual EBITDA multiples can vary materially based on EBITDA size, growth, recurring revenue, margins, customer concentration, owner dependence, geography and other company-specific factors.
Min
2×
Typical
3.5×
Max
5×
Revenue Model
Transactional
Capital Intensity
High
A typical multiple of 3.5× EBITDA reflects mid-market transactions in the $1–$50M revenue range.
Overview
Hotel businesses typically trade at 2×–5× EBITDA, with valuations driven heavily by location quality, occupancy rates, and the strength of RevPAR performance. Branded or franchise-affiliated properties attract stronger multiples than independent hotels. F&B revenue diversification and conference capability improve earnings quality. High fixed cost bases and vulnerability to economic downturns are consistent risks that compress multiples. Where the business owns its property, valuation may also require consideration of the underlying real estate and asset-based valuation methods.
Key Value Drivers
- Prime location and lease terms
- Strong RevPAR performance
- Brand affiliation or franchise agreement
- F&B revenue diversification
- Conference and events capability
Key Risks
- High fixed cost base
- Vulnerability to economic downturns
- Online travel agency fee dependency
- Labour intensity and high staff turnover
- Seasonal demand fluctuations
Related Industries
Disclaimer: All multiples are indicative estimates only and are not formal valuations or investment advice. They should not be relied upon for financial decision-making without independent professional advice.