Real Estate and Hospitality Valuation
29 valuation methods · 43 industries · Results in under 10 minutes
In short
Income properties such as apartment buildings and self-storage facilities are valued as property: net operating income divided by a market cap rate, with debt netted from there. Property management and hotel management companies are service businesses and have their own guides.
How businesses in this sector are valued
VA values an apartment building on net operating income rebuilt line by line from the operating statement, capitalized at a cap rate whose source is always stated, and for a building that reading is the whole report. A self-storage facility is valued on its net operating income over a cap rate at the middle of the band for stabilized self-storage unless you enter your own, with occupancy below a stabilized level flagged; a discounted cash flow, comparable companies and precedent transactions carry the rest of its weight as cross-checks. Hotels are valued with the restaurants and hospitality approach today, and a hotel management company, which earns fees for running hotels it does not own, has its own guide.
Guides in this sector
Apartment Property
Value an apartment building from its trailing twelve-month statement: net operating income rebuilt line by line, then capitalized at a market cap rate.
Self-Storage
Value a self-storage facility on net operating income over a cap rate, with occupancy, ancillary income and lease-up read the way buyers read them.
Property Management
Value a property management company on its fees and earnings, with owner retention, doors under management and ancillary fees read as buyers of a service business do.
Hotel Management
Value a hotel management company on its fee earnings: base and incentive fees, contract terms and owner concentration, read the way buyers of managers do.
Also valued with these guides
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- 1.Upload your financial statements, or type the figures in.
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Further reading
Is a Business Worth 3 Times Profit? When It Is 2x, When It Is 5x, and Which Profit Counts
Is a business worth 3 times profit? Often, if the profit is SDE. When 2x or 5x applies instead, which profit counts, and what diligence does to the price.
How Much Is a Business Worth With $500,000 in Sales? The Revenue Ladder From $100K to $3 Million
Revenue does not set a price, earnings do. See what businesses at $100K, $200K, $300K, $500K, $1M, $2M and $3M in sales are worth at 10%, 20% and 30% margins.
Business Valuation Methods Explained: DCF vs. Comps vs. Precedent Transactions
The five business valuation methods professionals actually use (DCF, comparable companies, precedent transactions, SDE/EBITDA multiples, and asset-based), when each wins, and how they combine into one defensible number.
Frequently asked questions
How is an apartment building valued?
On its net operating income, rebuilt from the operating statement, divided by a market cap rate. A broker's printed net operating income is used only as a cross-check.
What is a cap rate?
Net operating income divided by value. A lower cap rate means buyers pay more for each dollar of income, usually for safer or better-located property.
How is a self-storage facility valued?
Like other income property: net operating income over a cap rate, the middle of the band for stabilized self-storage unless you enter your own. Occupancy below a stabilized level is flagged, because the income has not matured.
Which property types are covered?
Apartment buildings, self-storage facilities and data centers are modelled. Other property types are not modelled yet, and the tool declines rather than guessing.
How is a hotel management company valued?
On its fee earnings, like other service businesses: for a smaller company, seller's discretionary earnings carry the most weight, alongside a discounted cash flow, comparable companies and precedent transactions. The hotels it runs are not its assets and are not part of its value.
As featured in
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Last reviewed September 26, 2026 against VA's valuation models.