Hotel Valuation Calculator
Turn rooms, ADR, occupancy and operating margin into an indicative hotel value.
Calculated directly from the assumptions shown.
Continue in the full model.
Move from this screening result to the complete Hotel Acquisition Model.
Get the model · €69 incl. VATHow the Hotel Valuation calculation works
Value = [(rooms × 365 × ADR × occupancy) + other revenue] × NOI margin ÷ cap rate.
Example calculation
100 rooms at €180 ADR and 70% occupancy generate €4,599,000 room revenue. Add €250,000 other revenue and apply a 30% NOI margin: NOI is €1,454,700. At a 6.5% cap rate, value is €22,380,000.
How professionals use the result
Use this for an operating screen. A full hotel valuation should reflect seasonality, departmental expenses, fees, FF&E reserve and capex.
Common mistakes
- Applying occupancy twice
- Using GOP margin as NOI margin
- Ignoring FF&E reserve
- Capitalising an unstabilised year
Hotel Valuation Calculator FAQs
What does the Hotel Valuation calculator measure?
Turn rooms, ADR, occupancy and operating margin into an indicative hotel value.
What formula does the Hotel Valuation calculator use?
Value = [(rooms × 365 × ADR × occupancy) + other revenue] × NOI margin ÷ cap rate.
Is the result suitable for a final investment decision?
Use it as a transparent screening calculation. Validate deal-specific tax, timing, financing and legal assumptions in a complete underwriting model before making a decision.
Do I need an account?
No. The calculator is free and runs in your browser. FormulaPlanet does not store your projects, inputs or results.
Is any input sent publicly?
No calculation is public by default. A shareable link is only created when you explicitly choose to copy one; that link contains the assumptions shown in its URL.
Why might my spreadsheet give a different answer?
Differences usually come from timing, compounding, sign conventions, fees or a different definition of the numerator or denominator. Match every period and definition before comparing.
What should I review alongside this result?
Use this for an operating screen. A full hotel valuation should reflect seasonality, departmental expenses, fees, FF&E reserve and capex.
Which mistakes are most common?
Applying occupancy twice; Using GOP margin as NOI margin; Ignoring FF&E reserve; Capitalising an unstabilised year.