Boutique Hotel / Bed and Breakfast
Hey BP community. I am looking at buying a small hotel with 7 units each having a kitchenette in a vacation community. Does anyone have any experience buying or selling one? I know we use cap rates a lot with rentals and commercial properties, but not sure the best way to value this one. Since it's a 24x7 operation or practically one how should I value it?
I know with businesses they are often valued at a multiple of gross income or net income, but again this is a first for me. Any feedback on how to base my offer price would be greatly appreciated!!
Thanks!!