Free · Confidential · No obligation
What Is My Hotel Worth? Get a Free Broker Opinion of Value
Tell us about your hotel and we'll give you a free broker opinion of value: a realistic range of what buyers are likely to pay, based on your numbers and actual sales. It's free, and there's no obligation to list with us. Everything you send us stays confidential.
What you get
- A price range, and how we got there.
- The things that help or hurt your value, like condition, brand requirements, and trends in your numbers.
- An honest answer on whether now is a good time to sell.
What we'll ask for
After we talk, we'll ask for:
- Room revenue by month for the last three years, without sales or occupancy tax, plus occupancy and average daily rate (or rooms rented)
- Profit and loss statements for the same years
- Any STR reports, inspections, appraisals, surveys, or recent improvements
- Franchise agreement and any PIP, if you're branded
- Any leases that affect the property
How hotels are valued
Buyers and lenders mostly look at three things:
- Income. Net operating income divided by a capitalization rate. The cap rate depends on the market, the brand, the property's condition, and interest rates.
- Revenue multiple. Price compared to room revenue (gross room revenue multiplier, or GRM). It's quick and common for smaller motels.
- Replacement cost and condition. What it would cost to build today, less wear and age, and less any PIP or deferred maintenance a buyer will have to pay for.
Then we check all three against what similar hotels have actually sold for.
Broker opinion of value vs. appraisal
| Broker opinion of value | Appraisal | |
|---|---|---|
| Who does it | A licensed real estate broker | A state-certified appraiser |
| What it's for | Pricing a sale, planning | Lenders, courts, estates, tax |
| Cost | Free from Scoggin Blue | Paid by the client |
| What it is | An opinion of likely sale price | A formal appraisal report |
A broker opinion of value is not an appraisal and shouldn't be used where an appraisal is required.
Confidentiality
Everything you send us stays confidential. We use your numbers to prepare your opinion of value and nothing else.
Questions
Will you share my numbers with anyone?
No. We use them to prepare your opinion of value and nothing else.
Is it really free?
Yes. There's no charge and no obligation.
Do I have to list with you after?
No.
Is this the same as an appraisal?
No. A broker opinion of value is a licensed broker’s opinion of the likely sale price. It is not an appraisal and should not be used where an appraisal is required.
Can you value a hotel outside New Mexico and Texas?
We can point you to an HBI broker in that area.
Thinking about carrying a note?
See what seller financing could look like for your sale.
Open the financing calculator