For smaller or mid-market hotels, buyers often use a multiplier of the annual room revenue, usually between the total yearly earnings. 🏗️ Factors That Drive the Price How to Buy a Hotel: Costs, Steps & Key Considerations
Example brands like Super 8 or Days Inn often trade at the lower end of this scale. : ~$160,000 – $170,000 per room. Common for brands like Comfort Inn or Best Western. Upscale/Full-Service : ~$318,000 – $400,000+ per room. how much is it to buy a hotel
Ultra-high-end assets like the St. Regis cater to guests seeking unique experiences. For smaller or mid-market hotels, buyers often use
The most common way to determine value is by dividing the property’s by a Capitalization Rate (Cap Rate) . Formula : Value = NOI ÷ Cap Rate. Common for brands like Comfort Inn or Best Western
The cost to buy a hotel varies widely, ranging from under $1 million for a small rural motel to over $100 million for luxury city properties. Most professionals value hotels using a "price per room" (or "per key") metric, which typically falls between $75,000 for budget brands and over $1,000,000 for high-end luxury assets. 🏨 Estimated Costs by Hotel Type
💡 : Use a Hotel Value Calculator to get a rough ballpark figure based on local market data. 📈 How Value is Actually Calculated