Hotel Business Valuation & Goodwill

In the hospitality industry, a precise business valuation is the foundation for critical strategic decisions. Whether it is a change in shareholders, a succession plan, or a corporate divestiture, a professional hotel valuation ensures transparency and objectivity for all parties involved.

During a business transfer, price expectations often diverge. While current owners may factor in emotional value and years of dedication, successors and financial institutions focus primarily on future earnings potential. An IHK-certified hotel expert serves as an objective authority, providing a resilient basis for negotiations through transparent and standardized valuation methods.
 
Specific Requirements for Hospitality Valuations

In the hotel sector, business values are inextricably linked to operational performance. A unique aspect of valuing hospitality businesses is the temporal limitation: the value is often based on the remaining period of granted use, such as the residual term of rental or lease agreements. A qualified hotel appraiser must master both general business KPIs and the specific dynamics of the accommodation market. Key triggers for a professional business valuation include:

  • Business Successions: Ensuring a fair balance between generations.
  • Transactions: Determining a market-driven purchase price for hotel sales or mergers.
  • Financing: Providing expert reports for credit institutions and loan applications.
  • Shareholder Changes: Legally sound valuations for the entry or exit of business partners.
Methods and Technical Expertise

Various valuation methods are applied depending on the specific purpose, ranging from the capitalized earnings method to international standards such as the Discounted Cash Flow (DCF) method. Selecting the appropriate methodology is crucial to ensuring the valuation holds up under scrutiny by tax authorities and banks. Only the application of the correct procedure by a specialized expert guarantees a reliable and defensible result.
 
Contact Our Hotel Valuation Experts

Rely on deep expertise and market knowledge when determining the value of your hotel property. We assist you in calculating complex business values with precision and discretion. For a personal consultation or to commission a professional hotel valuation report, please use our Contact Form or call us at +49 176 4884 62 90.