How Much Is My Motel Worth?

A motel is worth what its future earnings are worth to a buyer. That means the first step in answering 'how much is my motel worth?' is establishing a clean, credible Adjusted Net Profit from at least the last three years of trading.

Normalise the accounts: add back depreciation and interest, remove personal expenses, adjust for family wages, and disclose anything unusual. Buyers will do this work themselves — presenting it first builds trust and protects your price.

Freehold motels are typically assessed on a capitalisation rate applied to profit; leaseholds on a profit multiple that reflects the remaining lease term. The structure determines which method applies and the range of outcomes you can expect.

Beyond profit and structure, buyers assess location and local economy, the strength of the lease (for leaseholds), room count and configuration, the age and condition of rooms and plant, historical performance trends, and the competitive landscape.

Positive trends — rising occupancy, improving rates, steady profit — support the top of the range. Declining or volatile figures push buyers toward the bottom.

Comparable sales are the final check. What have similar motels in similar locations actually sold for recently? A professional appraisal weighs all of these factors together to give you a defensible number — not a guess, and not a guess dressed up as hope.

A free, confidential appraisal costs nothing and gives you a clear picture of where your motel sits in today's market, whether you intend to sell now or simply want to know.