Sell or Buy a Hotel or Motel in Illinois

Your complete guide to hospitality business transactions. Valuations, franchise agreements, and real estate considerations.

Illinois Hotel & Motel Market

$1.85M
Avg. Sale Price
3.0-5.0x
SDE Multiple
6-8%
Cap Rate
1,200+
IL Hotels/Motels

Hotel & Motel Business Overview

Illinois hotels and motels serve business travelers, tourists, and event attendees across the state. Chicago's convention business and statewide tourism create diverse opportunities in the hospitality sector.

Hotels and motels benefit from real estate appreciation, multiple revenue streams, and franchise brand support. Success depends on location, property condition, and operational efficiency.

Hotel & Motel Valuation

Business TypeMultiple/RateBasis
Economy Motel6-9% Cap RateNOI
Midscale Hotel7-9% Cap RateNOI
Full-Service Hotel6-8% Cap RateNOI
Boutique/B&B3.0-5.0xSDE

Key Valuation Factors

  • Real estate: Property value and condition
  • Brand: Franchise affiliation and recognition
  • Performance: RevPAR, occupancy, and ADR
  • Location: Market demand and competition
  • Condition: PIP requirements and deferred maintenance

Selling a Hotel or Motel

Key Selling Considerations

  • Financial records: 3+ years of detailed financials
  • Franchise status: Agreement terms and PIP requirements
  • Property condition: Recent improvements and deferred maintenance
  • Staff retention: Key management and staff
  • Market analysis: Competitive set and market trends

Illinois Regulatory Compliance

  • Illinois Hotel Operators' Occupation Tax
  • Local hotel/motel tax compliance
  • Fire safety and building codes
  • ADA accessibility requirements
  • Health department permits (if food service)
  • Liquor license (if applicable)

Buying a Hotel or Motel

Key Buying Considerations

  • Property inspection: Comprehensive building assessment
  • Franchise approval: Meet brand requirements
  • Financial analysis: Verify revenue and expenses
  • Market study: Demand generators and competition
  • PIP requirements: Upcoming capital needs

Hotel & Motel Types

🏨 Full-Service

Restaurant, meeting space, amenities.

🛏️ Limited-Service

Rooms and basic amenities.

🚗 Economy Motel

Budget-friendly lodging.

🏡 Boutique/B&B

Unique, personalized experience.

🏢 Extended Stay

Long-term accommodations.

🎰 Resort/Casino

Entertainment destination.

Ready to Buy or Sell a Hotel or Motel?

Get expert guidance for your Illinois hospitality transaction.