Your complete guide to hospitality business transactions. Valuations, franchise agreements, and real estate considerations. Our hotel and motel sale guide covers RevPAR, flag transfers, and Illinois hospitality compliance.
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.
Illustrative multiple ranges for planning only—not appraisals.
| Business Type | Multiple/Rate | Basis |
|---|---|---|
| Economy Motel | 6-9% Cap Rate | NOI |
| Midscale Hotel | 7-9% Cap Rate | NOI |
| Full-Service Hotel | 6-8% Cap Rate | NOI |
| Boutique/B&B | 3.0-5.0x | SDE |
Lodging deals underwrite occupancy, ADR, RevPAR, brand/PIP requirements (if flagged), and property condition. Location demand drivers (highway, corporate, tourism) matter as much as trailing twelve months.
Franchise resale · B&B · working capital.
Multiples/averages are illustrative planning tools.
Restaurant, meeting space, amenities.
Rooms and basic amenities.
Budget-friendly lodging.
Unique, personalized experience.
Long-term accommodations.
Entertainment destination.
Get expert guidance for your Illinois hospitality transaction.