Motel Mingle Forums Motel Valuations How do we value a Motel Freehold? Reply To: How do we value a Motel Freehold?

#1766

CVM

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    I have spoken to a few motel owners and asked for their rules to determine the ROI and value of a freehold motel.
    The results:
    *Coastal freehold motels sell for returns on investment between 9% and 14%
    *Inland freehold motels sell for returns on investment between 10% and 16% (I would hate to be selling at the 16%)

    Of course this is opinions of a few motel owners and there are a lot of other factors to consider when valuing a motel freehold.

    Well this is a starting point and hope you guys can add more info to help get this forum pumping and help others to make informed decisions before they sell or buy their motel.

    Has anyone had any experience with a motel valuation by a professional valuer? If you have, it would be great if you could share any info they use to value the motel freehold.