Valuing a Hospitality & Tourism business
Valuing a hospitality or tourism business calls for separating two things that usually go together: the value of the going concern and that of the property. Selling a restaurant whose premises you own is not the same as selling one on a lease, and confusing the two completely distorts the price.
Hospitality & Tourism sector EBITDA multiples
| Low | Typical | High | |
|---|---|---|---|
| EBITDA multiple | 4,0x | 5,5x | 7,5x |
Source: Dealsuite Southern European M&A Monitor H1-2025 · Period: H1 2025
Worked example
A business in this sector with EBITDA of €500,000 would have an indicative valuation between €2,000,000 and €3,750,000, applying the sector multiple range.
Example EBITDA
€500,000
Indicative valuation
€2,000,000 – €3,750,000
Illustrative calculation based on sector multiples. The real valuation depends on many other factors specific to your company.
What drives the value of a Hospitality & Tourism business
In hospitality the buyer values consistency: a business with steady occupancy or footfall throughout the year, a brand recognised in its area and a team that keeps the operation running without the owner behind the bar. Strong seasonality, owner dependence and short or high-rent leases drag the multiple down. If the property is owned, it is valued separately; if it is leased, the terms and the remaining years on the contract are decisive. Reviews and online reputation are now a measurable asset the buyer reviews.
What raises and lowers the multiple
Raise the valuation
- Steady occupancy or footfall throughout the year
- A consolidated brand and reputation in its area
- A team that runs the operation without depending on the owner
- A long lease on good terms (or premises that are owned)
Lower the valuation
- Strong seasonality that concentrates revenue in a few months
- A business that depends on the owner being present every day
- A short, expensive or uncertain-to-renew lease
- A weak or deteriorating online reputation
Frequently asked questions
- Are the premises included in the business valuation?
- They are valued separately. The going concern is valued on its EBITDA; the property, if owned, is appraised separately as an asset. If the premises are leased, what matters is the terms and the years left on the contract.
- How does seasonality penalise a hospitality business?
- A business that concentrates most of its revenue in high season is riskier for the buyer, who discounts the low-activity months. Steady footfall throughout the year commands a better price.
- Do online reviews affect the price?
- Yes, increasingly so. Your reputation on Google or booking platforms is a measurable asset the buyer reviews: it reflects customer loyalty and the risk that turnover drops after the change of ownership.
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