Hotel & B&B Valuation
Discover what your hotel or bed and breakfast could be worth today
Typical Valuation for a Hotels & B&Bs Business
| Metric | Typical Range |
|---|---|
| EBITDA Multiple | 3.0-5.5× |
| EBITDA Margin | 20-35% |
Market Overview
Hotels and B&Bs typically sell for 3.0-5.5× EBITDA in the UK market, though freehold property value often represents the largest component. The range reflects property ownership, occupancy levels, trading performance, and location quality. Freehold boutique hotels with strong trading command premium multiples (4.5-5.5×) due to property value and business performance, while leasehold or low-occupancy properties trade lower (3.0-3.5×). Key differentiators include freehold ownership (property can be worth £500k-£5m+), occupancy levels (65%+ ideal), average room rate (£80-200+ per night), online reputation (4.5+ stars, 100+ reviews), direct bookings vs OTA dependency (<40% commission channels), food/beverage revenue contribution, and owner accommodation separation. Regional hotel groups and hospitality investors actively acquire quality freehold properties.
How to Value a Hotels & B&Bs Business
The standard methodology for valuing a hotels & b&bs 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 hotels & b&bs businesses, that multiple typically ranges from 3.0-5.5×.
Use our free calculator to get an instant valuation estimate based on your actual revenue and profit figures.
Get Your Free Hotels & B&Bs Valuation
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.