Free calculator
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.
Your numbers
The numbers
Step 1 of 3
Loading your calculator…
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.