Hotel Valuation Calculator
Estimate what your hotel is worth from its net operating income and cap rate — with value per key and a revenue-multiple check.
How hotels are valued
The most common way to value an operating hotel is the income approach: divide its net operating income (NOI) by a capitalisation rate. The cap rate reflects the risk and return investors expect for that location and hotel type. A lower cap rate means buyers will pay more for each rupee of income. This free hotel valuation calculator also shows value per key, a figure buyers use to compare hotels of different sizes.
| Cap rate | Value of ₹1 crore NOI |
|---|---|
| 8% | ₹12.5 crore |
| 10% | ₹10 crore |
| 12% | ₹8.3 crore |
How to increase your hotel's value
Because value is a multiple of income, every extra rupee of sustainable profit adds many rupees of value. Growing RevPAR, cutting OTA commission with more direct bookings and improving reviews all raise NOI. This calculator gives an indicative figure only — for a sale, financing or legal purpose, get a formal valuation from a registered valuer.
Frequently asked questions
What cap rate should I use for a hotel?
Cap rates depend on location, brand, condition, market risk and interest rates. Use recent transactions of similar hotels or advice from a valuer; small changes in the cap rate change the value significantly.
What is value per key?
Value per key is the hotel's value divided by its number of rooms. It helps compare hotels of different sizes and check whether a price is reasonable for the market.
Is this an official valuation?
No. It is an indicative estimate for planning. Sales, bank loans and legal matters require a formal valuation by a registered valuer.
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