Hospitality Business Valuations

Hospitality business valuations cover several areas of valuation expertise. A restaurant valuation is different from a cafe valuation, a tavern valuation is different from a small bar valuation, a hotel valuation is different from a motel valuation, and a caravan park valuation is different from a bed n breakfast valuation.

Why? the most obvious differential is the different types of licenses required to trade and of course, the prerequisites for these licenses will vary from city to city and state to state.

For example, a small bar license is a new license category in Perth, but on the Gold Coast, there are completely different licensing rules. The business valuation will need a local expert valuer who understands the local complexities involved in operating a hospitality business.

Of course, an expert Business Valuer should also have access to the key benchmarks such as wage costs and occupancy costs as a percentage of sales. Gross profit operating margins are also key areas of scrutiny for a business valuer to examine when determining the market value of a hospitality business.

Hospitality business valuations are a specific valuation skill set and you should not entrust your hospitality business valuations to a real estate valuer or a business valuer if they do not have the relevant hospitality business valuations skill set or the most current hospitality business valuation market evidence.

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