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Motel Business Valuation Formula:

This is a general business valuation formula or method for existing and established (min 3 years) Motels or Motor lodges (including franchises) based on a multiple of the annual revenues of the property.

Motels Valuation Formula: Approximately 2 to 3 times annual gross revenues or sales.

Broker Comments: I have found that along with having good books and records that the overall condition and age of the property is one of the most important factors in supporting a higher multiple or asking price for a motel business or property. A good location is also obviously very important.

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