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Hotel & Motel Valuation Calculator

Enter your revenue and net operating income — income after operating costs, before any mortgage. Hotels and motels are priced off that figure, with a per-room sanity check alongside it.

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The numbers

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How this valuation is worked out

Hotels and motels are priced on net operating income divided by a cap rate, which works out to roughly 6 to 10 times NOI, and cross-checked against a value per room. Occupancy, average daily rate, the flag and the amount of deferred work on the building move the number more than anything else.

A worked example

A 60-room interstate motel with $1.5M of revenue and $410K of net operating income, running at 62% occupancy with no renovation due. At 8× that is roughly $3.3M, or about $55K a room. A required brand renovation would come straight off that figure.

Multiple ranges reviewed September 2026, based on offers buyers in our network are making today. They are a guide, not a quote — see how the process works.

What moves your number

  • Occupancy and average daily rate over the last three years
  • Franchise flag versus independent, and any required renovation
  • Roof, HVAC and room condition — deferred work comes off the price
  • Extended-stay, corporate or contract business that fills mid-week
  • Whether the property is owned and included in the sale

Want the full picture? What Is My Hotel or Motel Worth?

Common questions

What is a cap rate?

It is a year's net operating income divided by the price. An 11% cap rate on $330K of income is roughly a $3M value.

What is a property improvement plan?

When a franchise brand requires renovation to keep the flag. Buyers subtract the cost of that work from what they will pay.

Does this cover bed and breakfasts?

Yes, though small B&Bs often sell closer to the home's real estate value than to a business multiple.