Hotels & Resorts Business Valuations

The hospitality industry—comprising hotels, resorts, boutique lodgings, and branded franchises—is a core part of global tourism, business travel, and leisure. These businesses combine real estate, operations, and brand equity into one asset class, making them unique among service sectors.

Hotels and resorts are evaluated not just on property value, but on their ability to generate consistent revenue per available room (RevPAR), adapt to seasonal demand, and maintain operational excellence. With increasing interest from REITs, private equity, and international investors, precise valuation is critical.

What Makes Hotel & Resort Valuation Unique?

Hospitality valuation requires a hybrid approach, blending real estate appraisal with cash flow modeling. Brand affiliation, management structure (owned vs. franchised), and location are crucial determinants of value, as is the ability to capture both occupancy and premium rates.

Valuation differentiators include:

• Real Estate and Asset Ownership: Whether the operator owns or leases the property impacts valuation methodology and asset risk.

• Flag and Franchise Agreements: Brand affiliation can command rate premiums but may include royalty costs or restrictions.

• Seasonality and Market Segmentation: Fluctuating demand tied to location, events, or travel trends affects earnings predictability.

Key Hotels & Resorts Valuation Metrics

InteleK’s valuation experts use hospitality-specific models that account for both operating and asset-level factors. Core metrics include:

1. Revenue per Available Room (RevPAR): Combines occupancy and average daily rate (ADR) to measure revenue performance.

2. EBITDA and Adjusted EBITDA: Standardized earnings measure for comparing across operators and markets.

3. Occupancy Rate and ADR: Evaluate room utilization and pricing power.

4. Gross Operating Profit (GOP) Margin: Indicates operational efficiency and control over variable costs.

5. Capitalization Rate (Cap Rate): Used to assess asset value based on net operating income (NOI).

6. Property Condition and Renovation Schedule: Physical plant condition affects both guest experience and capital requirements.

7. Brand Equity and Online Ratings: Guest reviews, loyalty programs, and digital reputation influence future booking velocity.

Why Hotels & Resorts Need Professional Valuation

A certified valuation helps hotel and resort owners make informed decisions and maximize returns in a dynamic market:

• Secure Financing or Refinancing: Support underwriting with detailed asset and operating income analysis.

• Facilitate Sales or Joint Ventures: Present fair market value to investors, partners, or franchisors.

• Plan Renovations or Rebranding: Evaluate ROI on capital upgrades, brand conversions, or repositioning.

• Support Tax, Estate, and Regulatory Compliance: Ensure documentation meets IRS and audit standards.

• Assess Portfolio Performance: Use benchmarking data to prioritize assets and expansion strategies.

Why Choose InteleK for Your Hotel & Resort Valuation?

InteleK is a trusted advisor to hotel owners, developers, franchisees, and asset managers across the U.S. Our valuation team holds leading designations and hospitality sector expertise:

• Chartered Financial Analyst (CFA®)

• Accredited in Business Valuation (ABV®)

• Accredited Senior Appraiser (ASA®)

• Chartered Alternative Investment Analyst (CAIA®)

• Professional Risk Manager (PRM®)

We provide three levels of valuation reporting tailored to your business goals:

• Indicative Appraisal (Non-Certified) – Ideal for internal planning, board reporting, or early-stage investment strategy

• Summary Appraisal (Certified) – Suitable for financing, franchising, or partner transactions

• Detailed Appraisal (Certified) – Comprehensive reports for acquisition, legal filings, or tax compliance

All engagements include a personalized consultation to walk through findings, methods, and next steps.

Serving Hotel & Resort Owners Nationwide

From boutique urban properties to destination resorts, InteleK has valued hospitality assets across varied geographies and brand tiers.

InteleK Business Valuations & Advisory proudly serves clients in:

📍 Miami, Las Vegas, Los Angeles, Orlando, New York, Chicago, Denver, and More