Leasehold hotel valuation calculator
This calculator has been withdrawn
We reviewed the valuation calculators on this site and found them unreliable enough that we took them down rather than leave them up. A rebuilt version is in progress, tested against real sets of accounts before it goes live, and built to refuse a figure where a valuation genuinely cannot be produced — the way the calculators below already do.
What is working now
- Debt service cover calculatorWhether the trade covers the borrowing, from adjusted net profit, tested at a stressed rate rather than the rate you are quoted.
- Commercial stamp duty calculatorSDLT on a new lease, including the net present value of the rent, or on taking over an existing one.
What actually drives the value of a leasehold hotel or guest house
- Adjusted net profit, after the owner’s remuneration and normalised for one-off items
- Occupancy and average daily rate, and how both compare to the local market
- The unexpired term of the lease, and whether it is protected under Part II of the Landlord and Tenant Act 1954
- Rent, the review pattern, and rent as a percentage of turnover
- The condition of the premises and any outstanding repairing obligations under the lease — a full repairing and insuring lease on a tired building is a liability the accounts do not show
- Trade split between rooms, food and beverage, and functions
If you are valuing a business now, work from the accounts and take advice from someone who can read them. A number from any online calculator, including the one that used to be here, is not a valuation.