Hospitality Business Valuation (Pubs, Restaurants, Hotels)
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Typical Valuation for a Hospitality Business
| Metric | Typical Range |
|---|---|
| EBITDA Multiple | 2.0-3.5× |
| EBITDA Margin | 8-15% |
Market Overview
Hospitality businesses (pubs, restaurants, hotels, B&Bs) typically achieve valuations of 2.0-3.5× EBITDA in the UK SME market, with freehold properties often valued separately. Businesses with freehold ownership, year-round trade, strong online reputation, and experienced management teams command higher multiples (3.0-3.5×). Leasehold, seasonal, or owner-operated businesses trade at lower multiples (2.0-2.5×). Buyers prioritize property ownership, lease length, seasonality, reputation, and management team strength.
How to Value a Hospitality Business
The standard methodology for valuing a hospitality business in the UK is EBITDA-based. A buyer will calculate your Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) and apply a multiple based on sector benchmarks, business quality, and growth prospects. For hospitality businesses, that multiple typically ranges from 2.0-3.5×.
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Company Valuation Calculator provides free, instant business valuations for UK SME owners. If your business generates between £250k and £1M EBITDA, we may be interested in acquiring it directly.